Forex Daily Recap – Greenback Slipped Amid Poor Unemployment, PMI, & New Home Sales Data

The Euro pair seesawed throughout the day. Greenback rivals benefitted out of its fall. Crude Oil plummeted around 6% today, allowing the Loonie to continue the upward movement.
Nikhil Khandelwal
Economic Uncertainty

US Dollar Index

The Greenback marked the day’s high as well as low levels within a bracket of three hours in the European session. The USD Index was taking rounds near its weekly top levels in the morning session. Following a few negative German and Eurozone reports, the EUR/USD pair had dropped significant levels reaching near bottom levels. Taking advantage of the situation, the US Dollar made a jump of around 35 pips reaching near 98.35 levels. However, traders lost hopes over the Greenback post-release of major USD-specific events.

USD Index 60 Min 23 May 2019

Though the Initial Jobless Claims reported 4K below estimates, Continuous Jobless Claims recorded 6M higher than the market expectation. This report signaled higher unemployment growth in May, creating a negative sentiment around the Index. Also, US May Markit PMI Composite shocked the market, reporting 4.52% lesser than estimates. US New Home Sales Monthly Change for April was 2K below expectation. With the broadcast of all these adverse reports, the USD Index had lost all the gains accumulated earlier today. At 15:23 GMT, the Greenback was trading near 97.97 levels, 0.12% down for the day.


Cable had extended the previous day’s plunge rally into today’s morning session. The economic calendar remained silent amid the absence of GBP-specific events. However, Brexit tensions kept on troubling the pair. MPs continue to pressurize May to provide a timetable for her resignation. Though the Cable had then dropped to 1.2610 low levels, the pair took a U-turn from this pivotal point. The GBP/USD pair had risen over falling Greenback. Poor US Unemployment figures and May Markit PMI Composite had pushed down the USD Index, thereby elevating rival Pound. The Cable marked the day’s high near 1.2680 levels.


After opening up in the Asian session near 1.3438 levels, the Loonie started crawling upwards. The USD/CAD pair soared almost 59 pips reaching near the month’s peak spot around 1.3500 levels. But, this growth was short-lived amid bearish USD-specific economic data and the falling Crude prices.

The Canadian Wholesales Sales recorded higher numbers and stood bullish over the pair. Following such optimistic Canadian reports, the pair continued moving north. But laterwards, the Loonie dropped reaching near 1.3464 levels after the release of significant US economic reports. The Unemployment data reported higher figures, whereas the Manufacturing and Service PMI remained bearish than anticipated. Also, the US New Home Sales recorded lesser numbers, adding to more pullback in the pair.

Tumbling Crude prices weighed on the commodity-sensitive CAD. The WTI Oil futures declined 6% today due to OPEC-led supply cuts and rising US Crude Inventories. US-Sino trade tensions escalated after an EU official hinted of Trump’s disinterest to resume trade talks sooner.

USDCAD 60 Min 23 May 2019


The Euro pair kept sliding down today amid poor German and Eurozone reports but recovered later over plummeting Greenback. The EUR/USD pair initiated the day’s trading session near 1.1155 levels. However, investors lost hope as the critical economic events reported weak figures. The highly significant German May Markit Services PMI came 1.13% lower than estimates. The German Q1 GDP reported in-line with market expectation, providing a neutral impact over the pair. At around 08:00 GMT, the German May IFO figures reported weaker-than-expectation. Adding to this, Eurozone May Markit PMI Composite came near 51.6 over 51.7 forecasts. The combined effect of these weak reports hammered the pair making it reach near 1.1110 low levels.

Fortunately, below-expected USD-specific events saved the pair from a further plunge. The US May Markit Composite PMI and Continuing Jobless Claim showcased adverse figures. Following the release of such weak reports, the Greenback dropped and thereby allowed Fiber to jump. In this way, the Euro pair recovered the earlier day’s losses reaching near the day’s opening levels.

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.