Forex Daily Recap – Fiber Formed Symmetrical Triangle PatternIn the middle of adverse EUR data, the most significant German June YoY HICP figures reported in-line with the previous 1.3%. The US Jobless Claims data missed estimates and revealed slightly higher figures.
After marking yesterday’s closing near 1.1374 level, the Euro pair was trading 0.09% lower at around 15:18 GMT. The economic docket contained numerous low-volatile EUR-specific events throughout the day. Most of these reports missed market forecasts. Notably, June Eurozone Business Climate, a mid-volatile event, reported below-the-consensus estimates. This Climate Index came out around 35.29% lower than the overall market expectation. The Spanish June HICP and CPI revealed reports that stood even below the bearish Street estimates.
In the middle of such adverse reports, the most significant German June YoY HICP figures reported in-line with the previous 1.3%. Above all, the German CPI data release came out higher than market hopes. This positive data helped the Fiber to limit its daily losses. Laterwards, the EUR/USD pair dropped reaching near 1.1356 level amid mixed USD data release.
The USD Index made the opening on Thursday near 96.18 level. After pausing for a while in the early hours, the Greenback extended yesterday’s uptrend. At around 04:15 GMT, the US Dollar Index was testing the sturdy 96.34 resistance handle. The efforts yielded fruitful results, taking the DXY to a daily high near 96.39 level. However, the DXY bears sucked off the morning accumulated gains, making the Greenback decline to 96.15 level. The negative sentiment came up on the backdrop of mixed USD-specific economic data. The highly vital US Q1 Annualized GDP reported in-line with the market hopes of 3.1%. Somehow, the Q1 MoM GDP data missed estimates, reporting 0.2% lower than expectations.
The Unemployment data also came out slightly higher this time. The Continuous Jobless Claims computed since June 14 revealed 23K increase over 1.665 million forecasts. Also, the Initial Jobless Claims calculated since June 21 reported 7K rise over 220K estimates. The losses got limited amid positive Personal Consumption Expenditures (PCE) and Pending Home Sales data. The market remained tensed, ahead of the upcoming G20 Summit in Osaka, Japan. In the meeting, the US and China would have constructive trade talks. Trump had already reiterated that the US would continue to impose tariffs if the meeting yielded unsatisfactory outcomes.
The Kiwi pair had maintained a strong uptrend yesterday following RBNZ rate announcement. The Central Bank had decided last day to keep the interest rates unchanged at 1.5%. The policymakers had taken this stance considering the economic risks amid various global cues. China and New Zealand are good trade partners. Yesterday, both the US and China had agreed over a tentative truce. This positive update on the trade front helped the pair stay elevated.
After taking a tiny dip in the morning session, the NZD/USD pair took pickup kept the weekly uptrend intact. Earlier the day, ANZ June Activity Outlook published 0.2% above the 7.8% market hopes. Also, the ANZ June Business Confidence reported as -38.1 points over -22.7 points forecasts. Weaker US Unemployment data and MoM GDP data hammered the USD Index, helping the NZD/USD pair upsurge. The Kiwi pair touched the day’s highest point near 0.6702 level at around 15:15 GMT.
The Loonie pair displayed a low range of trading throughout the day. After marking the day’s opening near 1.1323 level, the pair showed slight elevation reaching 1.1339 level. Anyhow, the bears overtook the bulls and made the USD/CAD pair shed gains. This downward motion in the pair found significant support near 1.1305 level at 14:45 GMT. Most of the pessimism around the pair was on account of plummeting Greenback and escalating US-Iran tensions. Also, the Crude prices were hovering near $59.72 bbl, high value.