Forex Daily Recap – The Greenback 30 Pips Down Acted As A Catalyst For Its Major Rivals

US Dollar Index

The USD Index started trading at near 97.30 level. The index bled continuously during the day until it found some support near the 97.00 level. The pair rebounded from the same support vicinity twice in the afternoon session. The overall sentiment of the greenback was pretty low amid global concerns. The US February MoM Factory Orders reported as a negative 0.5 percent in place of the consensus estimate of a negative 0.6 percent. The significant rivals that weigh against the greenback benefitted most of the dollar plunge today.

EUR/USD

The biggest rival that rose against the greenback was the euro pair. The pair kicked off during the Asian trading session near the lowest vicinity of 1.1218 level. EUR/USD created a new high for the day near 1.1275 level. Along with the plummet in the US Dollar Index, the German February Trade Balance recorded figures higher than market expectation. The consensus had estimated €17.0B while the actual numbers came out as €18.7B. The Eurozone Sentix Investor Confidence for the April month recorded a negative 0.3 points as compared to the street expectation of a negative 2.1 points.  

USD/CAD

The loonie pair opened up on Monday morning near 1.3377 levels after sustaining two days of a range-bound pattern. The USD/CAD fell steeply later the day on the back of massive crude price upsurge. The pair was trading at a new four-day low level at 1.3313 touching the lowest vicinity. The plunge in the pair took place in the middle of falling US Dollar Index. The Index was 0.30 percent down hovering near the 97.00 level. Crude prices recorded fresh highs for the day amid rising geopolitical issues in the Libyan region and OPEC supply cuts. These global cues led to the upliftment in the crude prices thereby escalating the commodity-linked currency – Canadian dollars. The West Texas Intermediate (WTI) was trading near $64.00, 1.75 percent up for the day.

AUD/USD

The Aussie pair started the day near the lower vicinity of 0.7095 level. The pair shot up breaking all the in-between resistance levels. The AUD/USD pair reached near the strong resistance level of 0.7130 level but failed to breach it. The pair instead continued to stay in the consolidation mode after that. The weakening in the US Dollar Index was the primary driver for the Aussie pair upshot. The dollar was falling despite increased US yields reaching 2.50 percent. AUD/USD is on its path of recovering the previous incurred massive losses and getting stronger on the back of a weak greenback.

GBP/USD

The cable rang the Monday morning bell at 1.3037 level from where the GBP/USD kept uplifting. As GBP/USD had no significant events during the day, the fall in the greenback remains the primary reason behind the rise in the pair. The cable had touched the strong resistance level marking the day’s high at 1.3072 level. GBP/USD dropped vigorously from that high point rebounding again at 1.3036 level. However, the cable was again last seen to head to the same upper vicinity level. On the Brexit front, things are still uncertain, and no events pertaining to the same had happened during today’s trading session. UK PM Theresa May had put forth a request to the EU for an extension until June 30. May is anticipating a proper response to her request ahead of Wednesday’s EU summit. Fears of a year additional extension to the Brexit deadline have weighed more on the pair increasing the selling bais among the investor community.