Forex Daily Recap – Aussie Pair Slipped over Disappointing Job DataOil prices rose around 3.8% in the early hours as two Saudi Oilers got attacked in the Gulf of Oman. Cable down as Brexit Hardliner Boris won the first ballot. Weak Jobless Claims strengthened rate cut hopes.
The Aussie pair made a low swing movement in the early hours following disappointing Australian jobs data. The May Unemployment Rate recorded 5.2% over 5.1% estimates. There was an addition of 42.3K jobs in May. However, significant addition came from Part-time Employment counting to 39.8K. On the other hand, the Full-time jobs added remained merely 2.4K. Following such weak Employment data, the AUD/USD pair slipped from 0.6936 levels reaching 0.6905 levels.
At around 12:30 GMT, the US Initial Jobless Claims reported 6K higher than the 216K estimates. Also, the US May YoY Import Price Index recorded -1.5% in comparison to 0.4% estimates. The pair remained sustained within 0.6902/18 range levels in the later part of the day.
The pair had reached the weekly high near 1.3345 levels yesterday, gaining more than 70 pips in one go. Unfortunately today, in the morning session, the Loonie pair lost almost 50% gains attained amid crude price upshot. Oil prices rose around 3.8% in the early hours as two Saudi Oilers got attacked in the Gulf of Oman. The tankers got sabotaged while passing from near-by the Iranian coast. Hence, speculators drew similarities between the earlier attacks and today’s attacks, focusing spotlight over Iran. Also, Japanese PM Abe visited Iran today when the attacks took place. And, Trump calls him as a friend. However, as of now, the case remains unsolved. Later the day, weak US Unemployment data took control over the USD/CAD pair and continued the plunge rally. Somehow, the pair was recovering in the afternoon taking a bounce from 1.3300 levels.
After marking the day’s opening near 1.2694, the Cable was trading near 1.2679 at 16:00 GMT. The pair remained slightly subdued as there were no GBP-specific events in the docket today. The race for the UK Prime Ministership continued. Recent reports suggested that Boris Johnson has won the first ballot. Boris had already mentioned that he would at any cost (with/without a deal) make happen Brexit on October 31. Britishers fear his hardliner Brexit.
The GBP/USD pair slipped as Greenback gathered momentum over rate cut hopes as the US Jobless Claims missed estimates. Investors eye Fed’s meeting scheduled for next week expecting a rate cut. The pair was heading south at around 16:14 GMT as Boris led the Tory leadership race.
The Greenback had initiated the trading session on Thursday near 96.96 levels. There was a slight downfall in the early hours as German May CPI figures came in-line with the consensus estimates. Hence, the US Dollar Index declined further marking day’s low near 96.88 levels. Quite surprisingly, the Index gained momentum following lower-than-expected Jobless Claim figures and trade data. Continuous Jobless Claims computed since May 31 reported 1.695 million over 1.680 million forecasts. However, investors remained optimistic over probable Fed rate cuts in the near term with today’s poor US data. Recently, May CPI figures also showcased mixed reports. In the same time frame of 12:30 GMT, the US May trade indexes came out with numbers below estimates. With gathered optimism, the USD Index touched the daily high near 97.08 levels at around 15:00 GMT.