Forex Daily Recap – Poor CPI Data Pushed Down the Greenback Near 97.14 Weekly Low LevelsBullish Canadian Employment data made the Loonie drop 0.74% within a matter of minutes. The Fiber attempted to breach the robust 1.1252 levels during the day. UK March YoY GDP was in-line at 0.5%.
US Dollar Index
This week, the Greenback had tried best to stay steady within 97.40/70 levels amid rising trade concerns. Needless to say, the Index lost hold of the consistent zone yesterday. The Index explored furthermore downside in today’s session. At around 12:30 GMT, the Index slumped massively on the backdrop of weak US data. The intensity of the fall remained high as the events were expected to display bullish figures. The April MoM Consumer Price Index (CPI) excluding Food & Energy got reported around 0.1% lesser than the estimates. The Core CPI reported positive figures but couldn’t help the Index uplift. The Greenback computed against the six major rivals was trading near 97.33 levels at 18:16 GMT.
Traders started trading the Fiber near 1.1220 levels on Friday. With small upthrusts every hour, the pair managed to reach near the stable 1.1252 resistance levels. Anyhow, the pair failed to breach the sound levels rebounding near 1.1230 levels. Around 06:00 GMT, the market witnessed the German March Trade Balance figures. The reports revealed a higher number of €20.0 Billion over the estimates of €18.2 Billion. However, the EUR/USD pair remained reluctant to move upwards effortlessly. The gains got capped amid poor France March MoM Industrial Output data. This data reported as a negative 0.9% over the consensus estimates of negative 0.5%. Also, Italy March Industrial data came out bearish. Somehow, near 12:30 GMT, the overall investor sentiment got elevated over USD plunge. The Greenback had fallen reaching 97.14 levels following sparse US April CPI data.
The USD/CAD pair opened up today near 1.3456 levels. The Loonie hovered near 1.3470 levels in the Asian trading session. Further, the pair took a downturn from 1.3476 levels reaching down at 1.3391 levels. At 13:30 GMT the pair was trading around 1.3382 levels.
In the European session, the US economic data release came out bearish. The April CPI excluding Food & Energy (Both YoY & MoM) appeared near 0.1 percent less than estimated.
Whereas, the Canadian Unemployment and Net Change in Employment for April stood bullish. The Unemployment Rates decreased to 5.7 percent, and Employment report increased to 106.5K in the afternoon session. The Greenback declined following the bearish US CPI, thereby making the Loonie experienced a pullback.
The pair kicked off the day near 1.3008 levels and climbed up laterwards. The GBP/USD pair experienced a hike of 32 pips in the European session. The pair hovered between 1.3000 levels and 1.3040 levels. At 14:30 GMT, the Cable breached 1.3040 levels amid bearish US economic data. Today, the UK’S GDP appeared bullish and came out near 0.5%. Laterwards, the Industrial & Manufacturing Production reports recorded higher and the Goods Trade Balance improved than anticipated. The GBP gained over these sound indexes. On the USD side, the US April CPI computed excluding Food and Energy items stood low today.
The low reading resulted in the weakening of the USD in the European session. The GBP/USD pair kept on moving upwards following the US Dollar Index plunge rally. The UK continued to hover around Brexit deadlocks as the cross-party talks did not gain any significant progress. The talks have got postponed to next week, but challenges remain the same.