Forex Daily Recap – The Green Money Reached 97.77 Peak Amid Strong March Home Sales DataAlong with the greenback upliftment, the primary rival (EUR/USD) which always benefits from a dollar plunge, dropped significantly. Crude WTI Futures traded at a new high near $66.60 per barrel elevating the commodity-linked CAD. USD/JPY lost 30 pips in a matter of a few minutes.
US Dollar Index
The greenback had opened up on Tuesday morning near 97.30 levels and remained silent initially. The USD Index was 0.45 percent up at 14:39 GMT for the day. Investors are seeing the pair jumping reluctantly for the second time in this month. The former one had occurred on April 18 on the backdrop of the robust US Retail data. Today’s upward rally got triggered in the Asian trading session itself over widening of the US-German T-Bond yields. Laterwards, the green money received more uplifting power following higher-than-expected March New Home Sales data. The street analysts have set in a bearish stance on the sales number. This time, the consensus had, hence, estimated a 650K figure to the prior 662K number. However, the actual numbers stood way ahead of both, around 42K above the market expectation. The market remained surprised to post the sound US reports. The USD Index that computes the greenback against the six significant rivals upshot from 97.30 to 97.77 levels.
The Euro pair started the day taking rounds near 1.1251 levels. The pair had undergone a seesaw type movement in the early morning session. The continuous broadening of the US and German Government Bond yields, added to the EUR/USD early plunge.
Today, the event calendar contained no significant euro event. However, positive US data reports made the EUR/USD tumble heavily draining previous session gains. The EUR/USD went breaching the active support line of 1.1210 levels. The pair had faced such a massive plunge as the US bearish-expected reports came out bullish. The US March Home Sales Change recorded a positive 4.5 percent over a negative 2.5 percent estimation. In this way, the currency which benefits the most from a greenback slump dropped upon the opposite case.
Moving further later the day, the European Commission (EC) published a negative EMU economic index. The EC had reported the April Consumer Confidence Index a negative 7.9, compared to the negative 7.0 estimate.
The loonie pair had closed near 1.3344 levels on the last day from where it skyrocketed today. The early upsurge in the USD/CAD pair gets discounted to the healthy US Dollar Index and crude upliftment. Following a 0.2 percent higher CAD Feb Wholesale Sales data, the USD/CAD was kind-of apathetic. The pair directed upwards breaking the robust resistance line of 1.3373 levels. The barrel of West Texas Intermediate crude oil reached day’s high $66.60 amid the US broadcast earlier the day. The US Officials passed on a decision to reject the Iranian sanction waivers altogether. This US action to lift the crude prices was offset later with the Saudi’s plan to revamp its production. The Crude WTI futures were trading 0.68 percent for the day at 16:27 GMT.
The safe-haven pair kicked off the day on a negative note, slipping steeply from 111.97 to 111.66 levels. The pair had lost around 30 pips within a matter of a few minutes following BoJ Executive Director Maeda’s monetary comments. The Officials mentioned that the bank might take up monetary easing activities if needed. Japanese Finance Minister Aso took this opportunity to call the bank’s yen-buying method to compete for deflation as improper.
The USD/JPY, later the day, gained demand as market risk elevated. As a response to US sanction waiver rejection, the Iranian Parliament proclaimed the US soldiers as “terrorists”. This risk-off condition moved the investors to the safe-haven pair elevating it in the European session. However, the pair gained traction and lost grounds on the backdrop of sound US Home Sales data. The USD/JPY was drifting near 111.77 levels at 16:30 GMT.