Forex Daily Recap – The Greenback Weighed Lower To Its Rival On The Back Of Poor Reports Published

US Dollar Index

The Index that had touched the three-and-a-half high on the previous day tumbled with the same momentum today. Slowing down of US Bond Yields and dovish stances of global central banks increased the selling pressure on the greenback. The USD Index opened on Wednesday morning at 96.87 level, falling straight to the lowest vicinity of 96.53 level.

However, the plunge seemed to diminish with positive news on US-Sino trade talks. Myron Brilliant, Executive VP for International Affairs at the U.S. Chamber of Commerce said “Ninety percent of the deal is over, but the last 10% is the hardest part, it’s the trickiest part, and it will require trade-offs on both sides,”

More than expected Eurozone February Retail sales figures (YoY) also bolstered the DYX to rise a bit more during the European trading session.

US March ISM Non-Manufacturing Purchasing Managers Index (PMI) recorded lower than the market expectation. PMI reported 3.39 percent down to the consensus estimate. ADP released poor US March employment change numbers. DYX, however, created a fresh day low of 96.96 level. After a slight upliftment out of a few positive events, DYX again rebounded near 97 levels.

EUR/USD

After plunging in the North American trading session, the euro pair uplifted underpinned highly optimistic events. Markit Economics reported above the consensus Purchasing Managers Index (PMI) for Spain, Italy, and France. Eurozone February Retail Sales Figures YoY recorded 2.8 percent in comparison to the 2.3 percent street expectation. The plunging USD Index further led the EUR/USD to climb new heights today.

The EUR/USD broke yesterday’s strong resistance level of 1.1248 touching 1.1255 level. Easing global conditions amid settling US-China trade talks and Brexit hopes, further helped the pair to maintain the upper levels during the day.

GBP/USD

After consolidating in the early hours, the pair extended last day’s uptrend at 1.3132 level. Pound Sterling uplifted during the day over hopes developed around easing Brexit. The pair extended the upward rally for the third trading session. This positive behavior of the cable increased multifold after UK PM Theresa May said that she would meet the opposition Labour Party leader Jeremy Corbyn to talk about breaching the Brexit impasse.

As per Britain’s Press Association reports, May also has plans to arrange meetings with Nicola Sturgeon, Scotland’s First Minister and Mark Drakeford, the First Minister of Wales. Markit Economics reported weaker UK March Markit Services PMI reports. The PMI came around 48.9 points, before the consensus estimate of 50.9 points. This negative UK PMI figures triggered a slump shedding the gains accumulated during the Asian trading session. The GBP/USD was trading near 1.3171 level at 16:15 GMT.

AUD/USD

The Aussie opened on Wednesday morning with a huge green candle ranging from 0.7060 to 0.7100 level. Thereon, the AUD/USD kept up the bull run knocking off the significant resistance of 0.7128 level. March ANZ Commodity Price surprised the market with a report of 1.4 percent as compared to the consensus estimate of -0.3 percent. February Retail Sales reported 0.6 percent up as to the market expectation of 0.2 percent. February Australian Trade Balance was 1001 million above the expectation.