Forex Daily Recap – Euro Slides as EU Plans to Start Infringement Procedure Against Italy

US Dollar slipped as ADP May Employment data reported lower than market estimates. Aussie QoQ Q1 GDP recorded 0.4% over 0.5% estimates. Following EIA reports, the Crude Oil Futures dropped 5.43% reaching near $50.64 bbl.
Nikhil Khandelwal
European Union and Italy

USD Index

The Greenback was showing good signs of recovery in the Asian trading session, moving upwards breaking 97.08 resistance mark. The USD Index had gained strength out of the plunging EUR/USD pair, which makes up 50% of the Index. The Buck marked the day’s high near 97.15 levels at around 12:00 GMT. France May Markit PMI Composite recorded 51.2 over 51.3 forecasts. However, most of the Euro-specific data came out positive laterwards. There was a massive slump observed in the US Dollar Index at 12:15 GMT when the ADP May Employment data got released. The Employment Change recorded 27K in comparison to the market expectation of 180K.

US Dollar Index 60 Min 05 June 2019

Following the release of such appalling reports, the Index slipped 0.30% landing near 96.76 levels. Nevertheless, ISM May Non-Manufacturing PMI reported 2.52% over the consensus estimates of 55.5 points. Also, the US May Markit PMI Composite and Services PMI were in-line with the Street expectation. Hence, from the then lowest levels, the Index took a slight pickup reaching near 97.06 levels.


Fiber displayed a see-sawed performance throughout the day. The May Markit PMI and Services data for France, Spain, Italy, Germany, and Eurozone came out today. Most of the Markit data reflected positive data. Notably, the reports for the European Monetary Union recorded 51.8 points over to the 51.6 points forecasts. There were also some adverse Eurozone data in the middle of the day. Both the MoM and YoY Eurozone April Producer Price Index reported lower-than-expectation. The EUR/USD pair kept showing rigorous volatility with such release of each report. The pair gained in the European session when the USD Index bowed down over weak Employment data. At around 12:15 GMT, the Euro pair marked the day’s high near 1.1306 levels, 0.46% up since the last closing. The pair started falling from the top levels as reports suggested the EU would start infringement procedures against Italy.


The Aussie pair took a U-turn today amid poor Australian and Chinese data. In the early hours, the Aussie QoQ Q1 Gross Domestic Product (GDP) reported 0.4% over 0.5% estimates. Along with the QoQ data, the Q1 YoY GDP came out in-line with the market expectation of 1.8%. China and Antipodeans have good trade relations. Any changes in the Chinese counterpart significantly impacts the Aussie Dollar too.

AUDUSD 60 Min 05 June 2019

Today, at around 01:45 GMT, Caixin May Services PMI reported 52.7 in place of 54.3 estimates. The Aussie Dollar had already started the plunge rally after RBA’s rate cut yesterday. RBA policymakers had reduced the interest rates to 1.25% over the previous 1.50%. The late plunge was also due to the drop in the USD Index over poor Employment data. After opening near 0.6989 levels, the AUD/USD pair was trading near 0.6971 levels, 0.26% down for the day.


The Loonie pair started trading on Wednesday near 1.3391 levels and continued the last day’s downtrend until 10:15 GMT. After touching the pivotal mark near 1.3361 levels, day’s low, the pair took on the upward movement. Meanwhile, the Oil prices slumped after EIA Crude Oil Stocks Change computed since May 31 came out. The EIA reports recorded 6.771 Million over -0.849 Million. Following reports, the Crude Oil Futures dropped 5.43% reaching near $50.64 bbl. In the middle of the day, CAD Q1 QoQ Labor Productivity reported in-line with the Street analysts hope of 0.3%. With falling Fiber, the Greenback started recovering from the earlier incurred losses. And, with the rising USD Index, the USD/CAD pair also took the north flight.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.