Forex Daily Recap – Fiber Slumped more than -0.47% Following Draghi’s Dovish Statements

The RBA policymakers mentioned that the Bank would opt for reducing the interest rates again. German ZEW Survey June Economic Sentiment data shocked market reporting -21.1 points.
Nikhil Khandelwal
3d illustration of virtual human on technology background.


The slump rally that had begun on June 9 got slightly diverted in today’s trading session. The pivotal point for the reversal was 0.6835 levels. The pair had started the day near 0.6855 levels and continued the downtrend. The early slip in the AUD/USD pair came in after the critical release of RBA meeting minutes.

AUDUSD 60 Min 18 June 2019

The policymakers mentioned that the Bank would opt for reducing the interest rates again. Following such a dovish stance, the AUD/USD pair dropped nearly to the five-month bottom. China and Australia are good trading partners. Meantime, Trump tweeted that “Had a very good telephone conversation with President Xi of China. We will be having an extended meeting next week at the G-20 in Japan. Our respective teams will begin talks prior to our meeting.” Hence, positive news on the US-China trade dispute front allowed the pair to recover the early morning losses. The Aussie pair soared 0.72% reaching day’s high near 0.6882 levels.


The Euro pair kept the uptrend intact until President Draghi’s dovish stance over the economic growth. Mario mentioned that the Bank would leave the door open for further stimulus, including rate cuts. Hints for such a rate amid lack of improvement in the Eurozone economy hammered the Fiber. The EUR/USD pair suffered a massive plunge dropping more than 0.47% following the ECB President comments. The market reaction took the pair from 1.1242 levels to 1.1189 levels.

Laterwards, the pair continued to maintain a range-bound performance sustaining between 1.1181 and 1.1211 levels. German ZEW Survey June  Economic Sentiment data release shocked the market. Street analysts had expected -5.9 points this time. Anyhow, the reports came as -21.1 points. Also, the Eurozone CPI data was lower than the market expectation. The May MoM CPI data reported 0.1% lower than the consensus estimates of 0.2%. The Eurozone ZEW Survey – Economic Sentiment for June also disappointed the market participants. The Sentiment Index came in as -20.2 over -3.6 forecasts.

USD Index

After a small tumble rally in the early hours, the trend in the USD Index reverted near 97.38 levels. From this pivotal reversal point, the Greenback went straight up, touching 97.76 levels. The rise in the US Dollar came in as its major rival – EUR/USD suffered a sharp pullback in the Asian session. The Euro pair had fallen over the dovish economic stance provided by the ECB President Mario Draghi. The stances included probabilities of a rate cut in the near term considering the sluggishness improvement in the Eurozone economy.

US Dollar Index 60 Min 18 June 2019

Anyhow, this has lifted the Greenback to 13 days high. In response to Draghi’s commentary, Trump tweeted “Mario Draghi just announced more stimulus could come, which immediately dropped the Euro against the Dollar, making it unfairly easier for them to compete against the USA. They have been getting away with this for years, along with China and others.” Meanwhile, on the economic docket, there was an overall mixed performance. The May MoM Building Permits data reported 2K lower than the consensus estimates of 1.296 million. Despite that, the May MoM Housing Starts published 30K higher than the market hopes of 1.239 million.


The Loonie pair had made the opening on Tuesday near 1.3409 levels and remained slightly lower initially. Canada is among the largest exporter of Crude Oil. Any fluctuations in the Crude prices have an inverse impact over the pair’s movements. The pair had reached 1.3432 levels at around 10:00 GMT marking day’s high. However, the prices soared 5.8%, reaching the $54.50 per barrel mark in the Asian session. The primary driver was the positive sentiment developed around the US-Sino trade dispute after Trump’s tweets. The US President mentioned about productive talks to happen in the G20 meet, next week.

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.