Forex Daily Recap – The Loonie Climbed A 85pips Within A Span Of Minutes Amid BoC’s ReportsThe US-Sino trade concerns to end soon sets the market mood. Greenback rebounded losses on the backdrop of surprising NY April Empire State Manufacturing Index. GBP/USD steadies amid Brexit headlines.
The loonie pair made an excellent 85 pips jump at around 14:15 GMT after the release of BoC Business Outlook Survey. In the Q1’19 reports, the BoC reported the business sentiment around a negative 0.6 points from the previous 2.2 points. In the meanwhile, the crude gets underway the last day extended pullback.
The Crude Oil West Texas Intermediate (WTI) futures touched the lowest vicinity near $63.05 per barrel. The continued plunge comes as a consequence of news revealing higher growth of US Oils. On an immediate effect, the OPEC allies are expected to raise productions to keep an uphold of the market shares. This news got discounted, and the oil continued to remain doused in losses.
From the US release front, the NY April Manufacturing Index reported above-the-consensus figures. In the meantime, optimism developed around US-Sino trade settlement elevated the market mood stabilizing the USD/CAD.
After opening at around 1.1307 level, the euro pair merely had a sudden movement during the day. On the backdrop of a silent economic calendar, the EUR/USD remained capped under the stable 1.1320 resistance levels. The pair attempted quite a few times to breach the stubborn resistance level but failed to move beyond the levels. In the meanwhile, bullish traders remained less excited on the announcement of the German Central Bank.
The Bundesbank had released an upbeat national economy report for the first fiscal quarter of the year. On the flipside, the EUR/USD remained robust despite the broadcast of a higher-than-expected NY April Empire State Manufacturing Index. This time, the pair recorded 10.1 points, 68.33 percent above the consensus estimate of 6.0 points. However, at that moment, the market reaction remained utterly muted. Not surprisingly, near 13:00 GMT, the greenback took a boost from 96.80 levels, jumping to 96.92 levels.
Today, the Kiwi pair gave up the early morning gains after touching the day’s high near 0.6783 levels. After that, the NZD/USD lost grounds and went slumping until landing near the day’s low of 0.6750 levels. Along with the weakening greenback, the fall in the pair was also as a result of the release of some sparse economic data in New Zealand.
Since the start of this April, this is the fifth time that the cable attempted to breach the strong resistance of 1.3130 levels. However, the probability of such a breaking remains lower even at this time due to the lack of significant fundamental events. Now, it somewhat seems like the GBP/USD has found some comfort zone near the 1.3100 levels. The pair opened up the start of the week near 1.3086 levels. And at the time of writing this article, it was hovering near 1.3104 levels, 48 pips up for the day.
On the Brexit front, although the UK parliament is on Easter Recess, disagreements between May and Corbyn continue. The Opposition leader asks for a customs union while May’s party want to complete the Brexit to the earliest. Unless the internal uncertainty is resolved, leaving the EU may become a delayed story for the UK. More the delay, more the pressure developed on the GBP/USD.