During the day, the Loonie appeared to get stuck in the range of 1.3420/45 levels. The pair had dropped earlier the day after the US discarded the tariffs on Aluminum-Steel imports from Canada. This decision empowered Canada and Mexico to make the trade with the US, excluding tariff duties. Today morning the President tweeted: “Starting Monday, our great Farmers can begin doing business again with Mexico and Canada. They have both taken the tariff penalties off of your great agricultural product”. Meantime, Crude prices remained highly volatile ranging between $63.96 per barrel and $62.62 per barrel. Middle-east OPEC members called out for a Crude supply cut. However, Russian support for such commodity price pressuring tactics stood dubious. Concerns between US and Iran further sent Investors under tense. Iran’s Foreign Minister pointed out Trump’s actions against the country as “genocidal taunts.” On the other side, the falling USD Index hammered the Loonie, adding to more pullback.
The Fiber showed some strong recovery signs throughout the day. The EUR/USD pair was displaying a willingness to jump from the lowest vicinity near 1.1160 levels. The pair had reached 1.1172 levels, 12 pips up, at around 16:00 GMT. The rebounding effect sustained as the Greenback revealed weak health symptoms. Also, the controversies between the two Superpowers over Trade settlement seemed to worsen. The USD Index that weighs against the six rivals was pointing towards south while trading near 97.90 top levels. Moreover, the fundamental side of the Eurozone showed some good reports pushing the pair more upwards. The German April Producer Price Index (PPI) came out as 0.5% over the market expectation of 0.2%. Meanwhile, the weak Chicago Fed National Activity Index computed for April disappointed Greenback investors. The Index came out as negative 0.45 points over forecasts of negative 0.33 points. This action further favored the EUR/USD pair to grow and recover the previous losses.
The Yen pair started trading on Monday morning from the last week’s high point near 110.19 levels. Needless to say, there was no significant upward movement observed in the pair today. The USD/JPY pair lost around 0.40% in the Asian session following positive Japanese data. March YoY Industrial data for the Japanese region reported around negative 4.3% over negative 4.6% estimates. Falling Greenback added the further plunge to the pair’s movements bringing down to day’s low near 109.81 levels. Global tensions aroused out of US-Sino trade talks took away some of the Dollar gains. At around 15:50 GMT, the USD Index was hovering near 97.88 levels, 0.09% down since opening. The safe-haven pair had slipped amid investor fears over chances for a Chinese retaliation over Huawei issues.
The plunge rally that got triggered on May 3 maintained a follow through even today. Uncertainties around Brexit had acted as a catalyst for the fall in the Cable. At around 17:28 GMT, the GBP/USD pair was hovering near 1.2725 opening levels. The economic calendar stood light during the day amid lack of GBP events. The falling Greenback had bestowed the Cable with some significant upliftments. Theresa May plans a fourth voting session on June 3, to get her Withdrawable Agreement. The PM proclaimed that if the MPs support her deal, she may step down from office. Cross-party talks continued to stay uncertain ahead of May’s fourth attempt.
This article was originally posted on FX Empire
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