The US Dollar was bullish against all of its major pairs on Thursday. On the economic data front, Initial Jobless Claims declined to 2,438K for the week ending May 16th (2,400K expected), from a revised 2,687K in the week before. Continuing Claims surged to 25,073K for the week ending May 9th (24,250K expected), from a revised 22,548K in the previous week, marking another record high. Markit’s US Manufacturing Purchasing Mangers’ Index rose to 39.8 on month in the May preliminary reading (40.0 expected), from 36.1 in the April final reading. The Leading Index fell 4.4% on month in April (-5.4% expected), compared to a revised -7.4% in March. Existing Home Sales contracted to 4.33 million homes on month in April (4.22 million homes expected), from 5.27 million homes in March. On Friday, no major economic data is expected.

The Euro was bullish against most of its major pairs with the exception of the GBP, JPY and USD. In Europe, Research firm Markit has published preliminary readings of May Manufacturing PMI for the Eurozone at 39.5 (vs 38.0 expected), for Germany at 36.8 (vs 39.4 expected), for France at 40.3 (vs 36.0 expected) and for the U.K. at 40.6 (vs 37.2 expected). Also, preliminary readings of May Services PMI were publish for the Eurozone at 28.7 (vs 25.0 expected), for Germany at 31.4 (vs 26.0 expected), for France at 29.4 (vs 28.0 expected) and for the U.K. at 27.8 (vs 24.0 expected).

The Australian dollar was bearish against all of its major pairs.

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The GBP/USD currency pair is in focus. Prices remain in a bearish trend channel on a 15-min chart. The 1.225 level above should act as resistance on the decline. Look for a continuation lower towards 1.2185 support and ultimately 1.215. A break above 1.225 may lead the pair higher towards 1.2295.

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