Forex Daily Recap – Cable Shoots on New Prime Minister Hopes

Greenback dropped to weekly low levels as April Goods Orders reports came out below estimates. Loonie extended yesterday’s plunge rally. XAU/USD pair is trading 0.55% weekly up.
Nikhil Khandelwal
Parliament, who next? London Street sign

GBP/USD

During the day, Cable displayed fantastic movements favoring the traders as news revealed May would resign on June 7. However, the pair still hovers below the weekly entry point. The pair had remained consolidated near 1.2661 levels in the opening hours deciding which direction to move. The early rise was on the back of sound UK April Retail Sales figures. The market hoped for a decline in the statistics this time. Anyhow, the reports came out higher than market expectation. UK April Retail Sales YoY, which excluded Fuel data reported 4.9% over 4.2% estimates. Following such poor reports, the GBP/USD pair dropped around 0.55% in the morning session. Fortunately, the pair seesawed laterwards, covering up the morning incurred losses. The recovery upliftment came after the release of lower-than-expected US April Goods Orders data. This US data reported a negative 2.1% over the consensus estimates of positive 2.0%. Despite that, Brexit chaos capped further gains of the pair.

With May’s resignation, Boris Johnson sets ready to take over the PM position. From there, Boris will take forward the Brexit issue.

USD/CAD

Loonie extended last day’s plunge rally into Friday’s trading session. The pair had opened up near 1.3475 levels and had touched the day’s low near 1.3440 levels. The major contributor for the deepened plummet in the USD/CAD pair was the Greenback fall. During the day, the US Dollar Index had a massive slip from its weekly tops to weekly lows. The reason for the drop in the USD Index was the weaker-than-expected Goods Orders data and rising trade tensions.

USDCAD 60 Min 24 May 2019

Earlier the day, the overall global economy was down amid Trump’s comment to add Huwaei for negotiation in the trade deal. Chinese counterpart remained enraged over the President’s unnecessary actions. Meantime, the Crude prices remained quite silent near $58.50 bbl in the morning, later slipped to $57.50 bbl. The commodity had reached near such bottom levels after EIA reported huge Crude stockpiles on Wednesday. Anyways, the Oil prices showed minor recovery today as traders hope for a robust global trade trend.

US Dollar Index

After reaching the weekly top levels near 98.35 levels yesterday, the Greenback slipped to 97.61 levels today. Last day’s plunge had halted near 97.87 levels where the Index started trading on Friday morning. However, the Greenback was pushed off the cliff making the Index land near 97.63 levels in the afternoon session. Positive GBP data and adverse US data remained the main rationales behind the Greenback slump. UK April Retail Sales figures reported above the market expectation in the Asian session. While the US April Durable Goods Orders missed the estimates over a considerable margin. The most significant Non-Defense Capital Goods excluding Aircraft came as -0.9% over 0.3% forecasts. In a nutshell, the Greenback marked the weekly high yesterday and weekly low today. The lowest point touched until 15:46 GMT was 97.64 levels.

XAU/USD

Gold prices seemed to elevate today as investors shifted to safe-haven assets amid risk-off market conditions. Throughout the day, skyrocketing major rivals tried to push down the Greenback, making it reach near the weekly bottom. Adding to that, weak Goods Orders data further lowered the Index gains.

XAUUSD 60 Min 24 May 2019

The XAU/USD pair was trading near 1285.03 levels, 0.55% up for the week at around 17:18 GMT.

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