Forex Market: GBP/BGN trading outlook for June 6th

Friday's trade saw GBP/BGN within the range of 2.4946-2.5376. The pair closed at 2.4987, plummeting 1.24% on a daily basis. It has been the 10th drop in the past 22 trading days and also the steepest one since January 15th, when the exotic cross fell 1.54%. The daily low has been the lowest level since May 17th, when a low of 2.4855 was registered. In weekly terms, GBP/BGN lost 2.88% of its v alue during the current week. It has been the 14th drop in the past 22 weeks and also the sharpest one since the week ended on May 3rd 2015, when the pair plunged 3.22%. The exotic cross has depreciated 1.74% so far during the current month, following a 1.95% surge in May. The latter has been the strongest monthly performance since October 2015.

No relevant macroeconomic reports and other events, which may influence GBP/BGN trading, are scheduled on Monday (June 6th).

Correlation with other currency pairs

Taking into account the business week ended on June 3rd and the daily closing levels of the currency pairs involved, we come to the following conclusions in regard to the strength of relationship:

GBP/BGN to USD/JPY (0.9141, or very strong)
GBP/BGN to USD/CHF (0.8064, or very strong)
GBP/BGN to USD/BGN (0.7724, or strong)
GBP/BGN to GBP/USD (0.5459, or strong)
GBP/BGN to CHF/BGN (0.5155, or strong)
GBP/BGN to USD/CAD (0.5043, or strong)
GBP/BGN to EUR/USD (-0.7693, or strong)
GBP/BGN to AUD/USD (-0.9029, or very strong)
GBP/BGN to NZD/USD (-0.9604, or very strong)

1. During the examined period GBP/BGN moved strongly in one and the same direction with USD/CAD, CHF/BGN, GBP/USD and USD/BGN.

2. GBP/BGN moved strongly in the opposite direction compared to EUR/USD during the week.

3. GBP/BGN moved almost equally in the opposite direction compared to AUD/USD and NZD/USD during the period in question. This relationship has been the most pronounced between GBP/BGN and NZD/USD.

4. GBP/BGN moved almost equally in one and the same direction with USD/CHF and USD/JPY. This relationship has been the most pronounced between GBP/BGN and USD/JPY.