Forex Daily Recap – USD Index Slipped -0.57% over Unchanged Fed Interest Rates

The German PPI reported -0.1% over 0.2% forecast, lowering investor interest. Following some astounding reports, the GBP/USD pair skyrocketed 0.73% touching 1.2636 marks.
Nikhil Khandelwal
United States Federal Reserve System symbol (FED) on globe background,

USD Index

The Greenback kept plunging since the Asian session after marking the day’s high near 97.68 levels. The slump rally came in ahead of the FOMC meeting scheduled at around 18:00 GMT. The market had expected the rates to remain unchanged near 2.5%. Trump had earlier mentioned his stance over his dissatisfaction over Fed’s monetary policies. The President had pressurized the Central Bank multiple times before, urging for an interest rate cut. The USD Index had badly fallen in the first half of the day reaching near 97.39 levels.

US Dollar Index 60 Min 19 June 2019

Despite that, positive sentiment over the US-Sino trade dispute helped the market to limit the losses. Representatives of both nations would discuss over resolving the trade problem in the upcoming G20 meeting. At around 18:00 GMT, the Fed Interest rate decision came out. The Central Bank has decided to keep the interest rates unchanged at 2.5%. Following the Fed announcement, the US Dollar Index slipped 0.27%, reaching 97.12 levels.

EUR/USD

The Euro pair opened up on Wednesday near 1.1197 levels and showcased a slight slip in the early hours. The initial plunge came after the release of weak German May MoM PPI figures. The German PPI reported -0.1% over 0.2% forecast, lowering investor interest. Somehow, the Fiber took support near 1.1187 levels and made a reversal in the overall trend. The EUR/USD pair then soared 0.30% reaching 1.1221 levels amid Greenback fall. The USD Index had dropped significantly ahead of the Fed Interest rate decision. The consensus had expected the rates to remain unchanged at 2.5% this time. Meanwhile, the Eurozone April Current Account reported €19.2 billion over €10.6 billion estimates.

GBP/USD

The Cable continued the previous day’s uptrend into today’s trading session. Last day’s poor performance in the USD Index had triggered the positive trend in the pair. On Wednesday, the GBP economic docket displayed some pleasing reports elevating the pair. The May MoM Retail Price Index reported 0.1% higher than 0.2% estimates. Also, May YoY PPI – Input came in higher than market expectation. The Street analysts had hoped the PPI figures to report near 0.8%. Somehow, the reports recorded 0.5% higher than the market forecast.

GBPUSD 60 Min 19 June 2019

The most significant Inflation indicator – May YoY CPI reported at around 08:30 GMT. The reports remained in-line with the 2.0% estimates. Following such astounding reports, the GBP/USD pair skyrocketed 0.73% touching 1.2636 marks. The falling Greenback had provided the extra support for the elevation in the pair. Meantime, Boris Johnson stands ahead in the Tory leadership race. Boris has secured the backing of around 114 and 126 MPs in the first two ballots.

USD/CAD

Yesterday’s slump rally in the Loonie pair got paused near 1.3363 levels and slightly reversed in today’s session. The pair continued to consolidate in the range of 1.3368/83 levels in the Asian trading session. However, the pair displayed a definite Gap down in the early European session. Robust Canadian data allowed the pair to jump directly from 1.3373 levels to 1.3354 levels. The BoC May YoY CPI data came around 0.9% higher than expectations shocking the investor community. Also, the CPI Core was 0.1% higher than the previous 0.2%. In addition to the growing Loonie, the falling USD Index added substantial downward pressure on the pair’s movements. Along with all these factors, the EIA Crude report was higher than analyst estimates.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US