Forexlive European FX News Wrap –  2 May 2018 – Pound finds some love on PMI data and USD pauses for breath

Forex news from the European session – 2 May 2018

Markets

European markets were back from their break yesterday. However, markets were contained ahead of the FOMC meeting in the next session.

The highlight of the session was the UK construction PMI which beat estimates. At last the pound felt some love with GBP/USD  gaining traction off of the 1.3600 level of supply.  It currently sits at 1.3653 waiting for the FOMC and then services PMI out of the UK tomorrow.

The EUR/USD had a quiet session and is hanging around yesterday’s broken option level at 1.2000. Again, waiting for the FOMC and general USD profit taking / pausing for breath has seen the USD index pare back some of Tuesday’s gains during the session.

In all, it was quite a restrained session, but that was to be expected given the FOMC meeting ahead and all eyes fixing firmly on that meeting. It was time for a good reminder to prepare for any surprise we might get out of the FOMC to try and take, quick and easy advantage of it. USD/CAD shorts look a great trade if we see a surprisingly dovish FOMC.

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