Forex Daily Recap – European PMI Affecting Major Currencies

Sterling Pound sets off uptrend following Brextension. Lonnie pair uplifts over weak Iran Export numbers. AUD/USD plunges amidst Euro’s Fall.
Nikhil Khandelwal
financial technology(fintech) and world economy

EUR/USD Slumped Badly

The EUR/USD pair rang the opening bell today morning recovering last day’s massive losses. Things were appearing to be normal, and the pair was gradually gathering catching upward movement in the early hours. The pair faced an unexpected downshift during 08:00-08:30 GMT. Manufacturing Purchasing Managers Index (PMI) for Eurozone, Germany, and France were reported today. All the released PMIs were way far below the consensus estimation. The announced numbers severely affected the currency pair pushing it down from 1.1388 to 1.1297. The pair couldn’t recover the losses later the day and continued plunging.

EURUSD 5 Min 22 March 2019USD Index which computes the greenback against the six major rival currencies was seen to gain strength after a rally of continuous previous falls over dovish Fed announcements. The index went straight up from 96.21 to 96.76 following the weakening of the Euro currency.

GBP/USD Uplifts On Brextension

After reaching 1.3017 level on Thursday, Pound Sterling had not seen the same bottom level until now. The GBP/USD pair had skyrocketed reaching the day’s high of 1.3221 later the day. The favorable vicinity was created when European Leaders granted UK Prime Minister Theresa May a two-week extension to the Brexit. May now has time till April 12, to come up with a proper deal Brexit. The EU leaders took this decision to wrap up the Brexit before May 23 so that they could give their complete focus on the Upcoming European elections.

GBPUSD 5 Min 22 March 2019

The unexpected slip in the euro currency following the lower than market expectation reporting of the PMIs of the European Countries added indirect support to the cable. The GBP/USD climbed the chart as USD Index which is the base of the pair benefitted from the fall of one of the major currencies weighed against the greenback.

USD/CAD Reached Two-week High Level

During the early trading hours, USD/CAD was drifting between the range of 1.3362 and 1.3372 for quite some time. The pair uplifted by around 08:30 GMT over global economic concerns and crude price surge.

Iran’s March Oil Exports were out in the same time frame which reported lower numbers compared to the first two-month export numbers of 2019. Following the release of such poor crude export numbers, Crude price dropped by around 0.84 percent from $60 per barrel.  This, in turn, declined the commodity-linked currency CAD. The Canadian Dollar experienced further weakening due to disappointing Canadian Monthly Retail Sales data which came out to be below the consensus estimate. Robust Canadian Consumer Inflation numbers prevented the currency from completely drowning and losing hold.

AUD/USD Amidst Plunging Euro

The AUD/USD pair had been plunging since Thursday. Today’s session seen the extension of the rally. The fall which started at 0.7166 on Thursday had touched the lowest level of 0.7076 during the day at 17:45 GMT. The chaos surrounding the US-China trade talks had added more pressure on the AUD front. The upliftment of USD Index in connection with the fall of Euro also attributed to the decline in the pair. EUR/AUD went down from 1.5986 to 1.5921. Even though the AUD tumbled down, the drop was lower as compared to EUR.

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