Forex Daily Recap – Cable Surged +0.50% Despite Johnson’s Parliament Proroguing StanceThe US May MoM PCE – Price Index, Personal Income data and June Michigan Consumer Sentiment Index reported higher-than-estimated. The Japanese May YoY Housing Starts recorded -8.7% over -4.3% forecasts.
The USD Index displayed a see-sawed performance on Friday’s session. The initial slump in the Greenback’s movements came following upbeat EUR data release. The German May Import Price Index, France June CPI, and the most vital Eurozone June CPI-Core data had reported above estimates. The US Dollar Index had then reached 96.05 level and later found some recovery amid positive USD data. The May MoM PCE – Price Index, Personal Income data and June Michigan Consumer Sentiment Index reported higher-than-estimated. However, the June Chicago Purchasing Managers’ Index reported 6.84% lower than 53.1market expectation.
Finally, the Cable was successful in breaching the sturdy 1.2725 resistance mark. The positive force came following the release of the UK Q1 QoQ GDP report. The crucial macroeconomic data reported in-line with the previous figures, and even the market had expected the same. The QoQ GDP data reported 0.5% while the YoY data published around 1.8% this time.
Meantime, the Tory Leadership frontrunner, Boris Johnson, stated clearly that the Brexit wouldn’t extend beyond October 31. Boris said that the chances of a “No-Deal” Brexit in that case, remained as “million to one”. The frontrunner also hinted of even proroguing Parliament to avoid any disagreements over a No deal exit.
Despite Boris’s pessimistic comments, the GBP/USD pair kept the strong uptrend intact in the early hours. Anyhow, in the late European trading session, the GBP/USD pair was heading south, clearing out day’s gains.
The Aussie pair opened up on Friday near 0.7005 level and showed high volatility throughout the day. The AUD/USD pair touched the daily high near 0.7018 level, 0.19% above the last closing. Somehow, at around 15:52 GMT, the pair seemed to lose the early accumulated gains, heading again towards the opening mark. In the early hours, the May Private Sector Credit data came out. Both the MoM and YoY Credit reports remained below the market expectation. The Consensus had estimated the figures to report near 0.3%, but actual statistics came near 0.2%. The daily gains of the AUD/USD pair got capped amid positive USD data.
After falling down the slope on June 27, the Ninja appeared to have stuck in the 107.56/87 range level thereon. Yesterday’s positive Japanese May MoM Retail Trade data had helped the Yen currency to climb new heights. However, such an elevation had an inverse impact over the Ninja pair.
Today, the USD/JPY pair started near 107.76 level and kept the downtrend intact. The pair marked the daily low near 107.56 mark but soon took the recovery flight. The May YoY Housing Starts reported -8.7% over -4.3% forecasts. Anyhow, the USD/JPY pair remained capped within the healthy 107.80 resistance level that deterred any further actions.
The Loonie pair continued to keep a follow-through of the downtrend that got triggered on May 27. Though the primary trend was negative, the overall price action lacked the needed intensity. However, the USD/CAD pair showed some abrupt and rigorous movement in the European session. The Loonie pair slipped from 1.3099 level, straight to 1.3058 level. This sharp pullback came on the backdrop of higher-than-expected April MoM Canadian GDP data. The market had expected the significant GDP data to record near 0.1%. Somehow, the actual numbers exceeded the estimates by 0.2%. Meanwhile, the May MoM Industrial Product Price remained in-line with the 0.1% forecasts. After touching the bottom near 1.3057 level, the pair jumped immediately 35 pips reaching 1.3092 level.