Forex Daily Recap – The Cable Bears Gained More Power Despite Positive Brexit News

EUR/USD

The EUR/USD pair kicked off the day today near 1.1205 levels. The pair seesawed further and plunged reaching down near 1.1180 levels in the European session. Later the EUR/USD pair remained isolated within 1.1285/80 levels. However, the Fiber recorded a new high for the day around 1.1215 levels during the Asian session. A total of 37 pips collapse was recorded in the EUR/USD pair today.

Now, coming to the rationales behind this plunge in the pair. In the morning, the pair had opened up high as investor sentiment seemed to weigh more on the USD Index. The EUR/USD was pushed further down after the German Retail Sales and Manufacturing PMI. Both the indexes came out lower-than-expected. The Sales report reported near a negative 0.2 percent for MoM and PMI for Switzerland & Germany remained below 50. Following the release of such weak reports, the EUR/USD got hammered. Meanwhile, the US market appeared more bullish than anticipated on the economic data today. The growing Greenback has had a significant impact on the Fiber.

GBP/USD

The pair rang the opening bell on Thursday morning near 1.3053 levels. Laterwards, the pair showcased a robust uptrend touching 1.3078 levels. The traders’ sentiment focused on the BoE’s Monetary Policy Decisions had bestowed such an upsurge. Moreover, a piece of news floated in the morning, highlighting that Theresa May would accomplish Brexit before the new deadline. Also, there remained speculative rumors revealing that the UK Prime Minister is likely to accept the EU Customs Union. This optimistic fundamental news around Brexit allowed the GBP/USD pair to uplift with more than 25 pips today.

Laterwards, the pair displayed some massive slump bringing down the Cable near 1.3022 levels. This fall got followed after the broadcast of BoE’s Interest Rates. The Rates were decided to remain unchanged, hampering traders’ interest over the Pound pair. Although, the US Dollar Index showcased bearish US economic reports today, the pair continued to stumble. The GBP/USD pair was trading near 1.3027 levels at 16:15 GMT.

USD/CAD

The Loonie pair kicked off the day on Thursday morning near 1.3440 levels. The pair had made three touchdowns in the first half and towered from 1.3434 to 1.3471 levels in the latter half. The USD/CAD pair continued to rebound from the significant plunge that initiated on April 30. The pair was hovering near the opening levels following the BoC’s Governor, Pollozo speech on MPC decisions. The Canadian Central Bank reiterated the tightening of monetary policy in the short run. This decision made the pair to remain consolidated near 1.3440 levels.

The USD had gained momentum after the release of US economic reports in the European session. The Nonfarm Productivity (Q1), ISM-NY Business Conditions Index, March Factory Orders, appeared bullish than market expectations. Hence, the Loonie crawled towards 1.3472 levels.  The Crude prices got hammered following the EIA’s data on US Natural Gas Storage Change. The data had recorded an increase in the Gas stocks and this slightly pushed down the Loonie.

AUD/USD

The AUD/USD pair opened up today near 0.7091 levels and remained consolidated until the release of US events at around 11:30 GMT. The Aussie Dollar had slipped from 0.7023 to 0.6999 levels creating a new low today. The AUD/USD pair received support during the start of the day with the HIA New Home Sales report. However, the AUD/USD pair stood nonvolatile hovering around 0.7023 levels. Laterwards, a new low was created after the US jobless claims, Initial Labour Cost and the EIA data was issued. This data appeared bearish and recorded a slip of 24 levels in the European session.