Yahoo Finance Forex Daily Recap – The Euro Bulls Took Advantage of Weak US Home Sales Data
EUR/USD
After the Thursday’s plunge that eroded most of the April’s gains, the EUR/USD attempted to recover the previous losses. The pair rang the opening bell on Monday morning near 1.1237 levels. The Euro pair was expected to remain stabilized as the economic calendar contained no significant euro events. Most of the major currency pair remained silent amid Easter Holiday. However, the pair uplifted 0.23 percent reaching the day’s high near 1.1263 levels. The pair made the upswing on the back of weak US Home Sales data. At 14:00 GMT, the US Existing Home Sales data reported even below the market-expected bearish numbers. The EUR/USD appeared to morph upwards breaking the primary resistance line of 1.1258 levels. Laterwards, the Euro pair rebounded after bouncing back from the resistance line of 1.1263 levels.
GBP/USD
The cable started trading near 1.2991 levels and continued downtrend on the Easter Monday.
Negative sentiments revolved around Brexit. During the weekend, the news reported that a Senior Conservative leader would ask May to step down from premiership. However, investors expect the things to get resolved tomorrow as the House resumes office after the Easter Recess.
US Dollar Index
The greenback had soared last on April 18 following robust US Retail Sales data. The Retails data had reported a high positive figure when the consensus had estimated a negative number. Today, the US Dollar Index started losing the top levels attained in the last week amid sparse Home Sales data. The Chicago Fed National Activity Index reported a slightly higher negative figure for the March month. This time, the index came out as unfavorable 0.15 points to the previous negative 0.31 points.
The greenback uplifted hardly three pips after the release of this economic activity index. Moving on, the US Dollar resumed the downward rally when the Home Sales data recorded a negative 4.9 percent for March. The market had expected a negative 2.3 percent for this housing report. More precisely, the US March MoM Existing Home Sales recorded 90K below the consensus estimate of 5.30 million. In the meanwhile, the 3-month Treasury bill auction mentioned a 0.02 percent growth in its average yield. Also, the average return for 6-month T-bill recorded a 2.40 percent. The USD Index was trading near 97.27 levels marking the then day’s low at 16:41 GMT.
USD/CAD
The loonie pair extended last day’s North American session fall into today’s session. The pair started the day tumbling from 1.3381 levels landing near 1.3359 levels. The first plunge gets discounted to the rise in crude prices.
Today, the Crude Oil West Texas Intermediate (WTI) Futures had marked a 2 percent jump in the Asian trading session. The crude went north when the US reports suggested of Iranian Sanction waivers getting rejected soon. The USD/CAD then remained consolidated for quite a while amid lack of economic data. The pair, however, slid further reaching day’s then low near 1.3340 levels on the back of weak US Home Sales data.
The street analysts had already taken a bearish stance on the US Home Sales figures, while the actual numbers reported even lesser than the expectation. Although the loonie pair had undergone a slump today, the overall picture for the USD/CAD looks quite decent. The pair continued to afloat and remain well above the lowest points of the month amid continued crude upsurge. The oil prices are expected to keep elevating until the geopolitical tensions, and OPEC-led supply diminishes.
This article was originally posted on FX Empire
