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Forex Daily Recap – The USD Index Recovered Amid Sound US Economic Data

Nikhil Khandelwal

US Dollar Index

The Greenback marked the day’s high near its weekly top levels. The Green money was hovering near 97.82 levels at around 15:00 GMT. With the backing of some positive US events, the USD Index managed to recover from all its weekly incurred losses. The April Housing Starts MoM reported around 1.235 million over the estimates of 1.205 million. Monthly Building Permits for April came 6 million higher than the market expectation of 1.290 million. Initial Jobless Claims computed since May 10 recorded 8K lesser than the consensus estimates of 220K. The day highlight remained the Philadelphia Fed May Manufacturing Survey, which reported 84.44% growth this time. Notably, the weak Euro-specific data had provided the early upward push for the Index.

EUR/USD

The Euro pair had remained consolidated in the early Asian trading session. At around 08:00 GMT, Italy reported mixed CPI and Trade data. Following the in-line MoM & YoY Italy CPI figures, the pair attempted to breach the healthy 1.1225 resistance levels.

EURUSD 240 Min 16 May 2019

However, the Fiber couldn’t knock off the sound levels and cooled down near 1.1203 levels. The primary force behind the plunge was the poor Italy April CPI numbers computed on EU norms. Though there appeared positive Italy Trade balance laterwards, the pair ignored and extended plunging. The fall in the EUR/USD pair deepened with the release of positive USD-specific reports. US April Housing data and Philadelphia Fed May Manufacturing Survey reports recorded higher-than-estimates. The US Unemployment data also reported fewer numbers helping the Greenback and hammering the Fiber. Anyhow, the stumble in the pair ceased near 1.1173 support levels, last touched on May 9.

AUD/USD

The Aussie pair extended last day’s tumble rally into today’s session. The AUD/USD pair had made the opening on Thursday near 0.6929 levels. Laterwards, the pair received support near 0.6907 healthy levels. In the first session, a bearish Australian Employment data made the pair suffer a pullback. The April Unemployment rates increased to eight-months high, appeared near 5.2%. Also, the full-time Employment data reported negative figures than positive estimates. Furthermore, RBA’s Bullock gave her speech on the ‘Better Payment and Clearing Systems’. However, the AUD/USD pair ignored her words and continued the downward rally getting supported near 0.6911 levels. The Greenback got uplifted amid the bullish US economic data. Today, the US Housing, Building Permits, Jobless Claims, and Philadephia Fed Manufacturing data appeared higher than expected. Following such positive US reports, the pair slipped reaching near 0.6901 levels.

USD/CAD

USDCAD 60 Min 16 May 2019

The Loonie seesawed during the Thursday trading session. The pair opened up near 1.3441 levels, slid to 1.3400 levels, and then again reverted to the opening point. The early decline in the USD/CAD pair gets discounted to the crude upsurge. The Crude Oil WTI Futures went up near $62 per barrel mark amid global crude supply tensions. The last two attacks on Saudi attacks got linked with Iran’s outrage over US sanctions. Fearing a possible attack anytime, President Trump asked all the US non-emergency diplomatic staffs to come back from Iran. These global cues elevated the Oil prices and left the Loonie under pain. The second part was the upliftment from the day’s low to the day’s high. Sound US Housing data, Unemployment figures, and Fed Manufacturing Survey Index helped the pair gain the lost pips. The USD/CAD was trading near 1.3443 levels at 17:37 GMT.

This article was originally posted on FX Empire

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