Forex Daily Recap – The Cable Plummeted Heavily On May’s Third Consecutive Defeat In The House

GBP/USD

The Cable rose on Friday morning on the back of above-the-consensus Irish March Consumer Confidence and February Nationwide Housing Prices YoY & MoM. GBP/USD, hence, followed an uptrend in the early trading hours ranging from 1.3054 to 1.3083 level.

By the mid-day, the pair slipped off the cliff. The pair heavily fell from the then resistance level of 1.3083 straight down to 1.3013 level. This slip happened over the rising concerns vis-a-vis Brexit Extension chaos. However, In-line UK Gross Development Product (GDP) figures released at 09:30 GMT saved the cable from further slipping. Later the day, the main event of UK Parliamentary Voting on May’s Withdrawal Agreement happened, and she was rejected again for the third time. After the event, the cable had slumped reaching the lowest vicinity till then of 1.2978 level. May’s rejection now confirms of a Hard Brexit which was the default option on denial.

US Dollar Index

Despite lower than expected US fourth fiscal quarter GDP data reported last day, the US Dollar Index went up 0.1 percent reaching 96.773 on the opening bell on Friday Morning. Later in the mid-day, the greenback again rose on weakness in the basket of currencies that weigh against the index. GBP/USD had slumped heavily in the middle of rising concerns over the Brexit extension uncertainties. Laterwards, the USD Index gave up the morning gains after the release of poor January Core Personal Consumption Expenditure MoM and YoY. Both the numbers were below the consensus estimates. Chicago Purchasing Managers Index for March reported as 58.7 points as compared to the market expectation of 61.0 points. More than expected March Michigan Consumer Sentiment Index and February New Home Sales (MoM)  helped the US Dollar Index from plunging further.

NZD/USD

The second day after the big plunge in the pair, NZD/USD was seen to rebound from previous losses. The pair was slowly seen to jump fresh heights amid poor US Consumer Spending data. After starting the day at 0.6782 level, the Kiwi pair reached new heights near 0.6819 levels. The pair were seen heading to break the last day’s high of 0.6828 level. However, the NZD/USD couldn’t make it happen as the US reported positive Consumer Sentiment Index and Home Sales figures above the market expectation.

USD/CAD

The main highlight for the day for the loonie pair remains the massive slump at 12:15 GMT making the pair fall from 1.3422 reaching 1.3351 level. The USD/CAD pair tumbled after the release of the Canadian GDP MoM figures for January. The GDP reported at 0.3 percent as compared to the consensus estimate of 0.0 percent. The pair performed a range bound movement during the early trading sessions amidst falling crude prices. US President Donald Trump’s tweets expected to have downward pressure on the crude prices. However, the Crude Oil West Texas Intermediate (WTI) Futures still touched new highs of $60.71 per barrel.

USD/JPY

Japan February Housing Starts YoY reported surprised the market at 05:00 GMT. The Japanese Housing figures were 4.2 percent as compared to the consensus estimate of 0.5 percent. The haven pair slumped from 110.79 to 110.55 level following such positive reports. During the day, the USD/JPY pair acted in a range bound movement fluctuating the resistance level of 110.93 and the support level of 110.55.