Weekly Market Analysis from 5th of May 2025

Important economic data released this week includes central bank decisions and employment data, for the USD, GBP, NZD, and CAD.

Starting on Wednesday, New Zealand's employment data will provide insights into the strength of its labor market. The Employment Change figure is forecast at 0.1%, a slight increase from the previous figure of -0.1%. The Unemployment Rate is also forecasted to increase from 5.1% to 5.3%, signaling a cooling labor market.

Later in the day, The Federal Reserve's interest rate decision and accompanying statement are major market drivers. The expectation is for the Federal Funds Rate to remain unchanged at 4.50%. However, the FOMC statement will be closely scrutinized for any hints about future policy direction.

On Thursday, the Bank of England will announce the official bank rate and it is expected to decrease by 25 basis points from 4.50% to 4.25%. Later in the day, unemployment claims will be released from the U.S. and if the actual data is less than the forecast, this could signal strength for the USD.

The week concludes on Friday with Canadian employment data. Employment Change is forecasted at 24.5K, up from the previous figure of -32.6K. The Unemployment Rate is also forecast to remain unchanged at 6.7%.

Here are 3 markets to watch this week

All technical analysis is provided by Trading Central

GBP/USD

If the price remains below the pivot at 1.3315, the pair could extend its decline toward the support levels at 1.3255 and 1.3230. Conversely, a move above 1.3315 may see the currency pair climb towards the 1.3345 and 1.3375 levels. The upward potential is likely to be limited by the resistance at 1.3315. The RSI is neutral.

NZD/USD

If the price remains above the pivot at 0.5953, the pair could extend its climb towards the resistance levels at 0.5998 and 0.6009. However, a move below 0.5953 may see the currency pair decline towards the support levels at 0.5933 and 0.5922. The RSI is above its neutrality area at 50, indicating positive momentum.

USD/CAD

If the price remains below the pivot at 1.3835, the pair could extend its decline toward the support levels at 1.3760 and 1.3740. Conversely, a move above 1.3835 may see the currency pair climb towards the 1.3860 and 1.3885 levels. The RSI suggests potential for further downward price movement.

This week’s high impact market events

The following economic events and data releases have the potential to cause considerable price movements, thereby offering you both opportunities and risks. Stay informed and leverage our economic calendar to access real-time data and analysis as these key events unfold.

All Times are GMT +3

Wednesday 7th May

Thursday 8th May

Friday 9th May

How will you trade the markets this week?

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