Forex Daily Recap – Dollar Index Rebounded Previous Losses On The Back Of Strong US Reports

US Dollar Index

The greenback remained sustained with a sideways pattern during the Asian trading session in the range of 96.90/95 levels. The US Dollar Index had shot straight up on the release of multiple higher than expected US reports. The US March Producer Price Index (PPI) reported 0.3 percent above the market expectation.

The MoM reports for the US March PPI figures excluding Food and Energy revealed 0.1 percent above the street estimates. Both Initial Jobless Claims computed since April 9, and Continuing Jobless Claims calculated since March 29 reported lower than the analyst anticipation provided an extra boost to the already rising US Dollar Index. The DXY had touched the strong resistance of 97.19 level making it the day’s high at 17:58 GMT.

USD/JPY

After plunging continuously for three days in a row, the safe-haven pair was 0.44 percent today. The USD/JPY pair opened up on Thursday morning near 111.01 level. The pair later on slowly kept climbing the chart knocking off the strong 111.53 resistance level. The main pushing force behind the yen pair was the uplifting US Dollar Index. The greenback computed against the six major rival currencies went above the 97.00 level rebounding last day’s losses. The USD Index had risen underpinned strong US Producer Price Index (PPI), and Jobless claims figures. Along with these positive reports, the 10-year T-bond went 0.75 percent up adding fuel to the pair’s upward rally.

EUR/USD

The Euro pair remained in the consolidation phase near 1.1276 level during the early Asian trading session. German March Consumer Price Index (Both YoY & MoM) reported in-line with the respective consensus estimates. However, the EUR/USD faced steep falls reaching day’s fresh low near 1.1254 levels. The greenback soared amid positive reports touching new highs pushing down the most prominent rival euro and thereby generating strong pullbacks for the EUR/USD. Earlier the day, ECB President Mario Draghi and ECB Governing Council member & Bank of France Head Villeroy had mentioned their dovish stance regarding eurozone economic slowdown.

GBP/USD

The GBP/USD rang the opening bell on Thursday morning near 1.3094 levels. It saw some slight upward initially but failed to keep up the hold dropping near the lower vicinity marking fresh low for the day at 1.3057 level. The previous day, the EU had granted the UK with an additional Brexit extension until October 31. This time, the extension is a bit “flexible” one which means the UK can leave at any point within the deadline after ratifying a proper deal with the EU.

But, the cable bulls remained silent despite such a flexible Brexit extension. The cable also falls prey to the rising greenback. The Pound pair slumped after the release of above the expected US PPI figures and lowest Jobless claims recorded since 1969.

AUD/USD

The Aussie pair started the morning session near 0.7169 level and was pushed off the cliff making it land somewhere near the lower vicinity of 0.7120 level. The continuous tumbling in the AUD/USD was backed obviously on the strengthening US Dollar Index. The US had released some splendid report numbers which brought forth the deepened plunge in the significant rival currencies weighed against the greenback.