Forex Daily Recap – FOMC Minutes Revealed No Rate Change in the Near PeriodMPs might reject May’s new improvised deal for the fourth consecutive time. Oil prices dropped over huge crude stockpiles as per EIA report. Trump eye on more Chinese Survellience firms.
US Dollar Index
The Greenback that weighs against the six significant rivals currencies sustained near 98 top levels today. Fed minutes indicated no as such urgency among FOMC members to observe a rate surge. The minutes highlighted that there remained no severe concerns from the global cues like Brexit and Trade war. In a nutshell, the Fed would keep the rates unchanged for the next couple of months. The USD Index showcased 4-6 pips upward movement following the minutes’ release. Earlier the day, the Greenback had remained highly volatile jumping between highs and lows. Investors continued to stay anxious over the rising US-Sino trade tensions. Some reports suggested that the US is planning to blacklist a few other Chinese Surveillance firms running in the US, like Huawei.
During the Asian opening session, the Cable made a downshift amid Brexit uncertainties. Last night, Theresa May presented her “new improvised deal” to the MPs. The main highlights of the deal were the Customs Union and the Second Referendum. The Tories had mentioned their disagreement yesterday itself. May had introduced the Customs Union section over demand from the Corbyn’s Labor. Hence, the PM expects strong support from the Labor in her Fourth attempt. However, in the early session, a Labor party representative hinted that they don’t agree to May’s latest deal. Cable investors went unnerved over rising odds of May losing again.
Meanwhile, talks continued on May’s resignation. Speculations suggested that her former Foreign Secretary Boris Johnson may become the next PM. Johnson had also served as the Mayor of London. On the events front, positive UK April Retail Price Index attempted to provide an upward drift. Nonetheless, lower-than-expected CPI and PPI figures pushed the Cable more down. The GBP/USD pair had touched the four-month low near 1.2624 levels.
Loonie traders stood worried earlier the day seeing the plunge rally in the pair. The Oil prices had shot up in the Asian session amid OPEC+ proclaims production cuts. On the other hand, Russia remained reluctant for a supply cut. Such contrasting opinions among the OPEC+ members made the Crude steady thereon. Crude price change has an inverse impact on the USD/CAD pair. Hence, the pair was down in the morning. Later in the European session, Canadian March Retail Sales figures came out. The reports were above the market expectation. Following such positive reports, the Loonie lost another slot of around 40 pips. The pair had then reached the lowest point near 1.3355 levels today. However, the pair reversed the trend as the Oil slumped on the release of EIA Crude Stocks Change report. This EIA Inventory report computed since May 17 recorded 4.740 million figure.
On the contrary, the market had expected a negative number this time. Hence, such a vast inventory revealing report pushed the Loonie 0.58% upwards. The pair marked the day’s high near 1.3434 healthy resistance levels.
The Aussie pair maintained seesawed performance throughout the day. Robust support lines near 0.6873 levels made the pair bounce upwards three times today. Earlier the day, the Westpac April MoM Leading Index came near negative 0.1% over previous 0.3%. Also, Q1 Construction Work Done reported negative 1.9% over 0.0% forecast. The AUD/USD pair dropped around 0.19% following such adverse reports. The pair had marked the day’s high near 0.6897 levels. In the second half of the day, the earlier accumulated gains got vapourised amid rising Greenback. The Index had aroused from 97.90 levels, straight to 98.06 levels.