The Cable continued to lose ground amid weak GBP-specific data and Brexit chaos. During the middle of the day, there was a Gap-Down movement showing a huge selling pressure. The GBP/USD pair dropped near its monthly low near 1.2907 levels. All the economic events specific to the GBP came out below the consensus estimates except the March ILO
Unemployment data. Also, the April UK Claimant Count Change reported near 24.7K over the market expectations of 24.2K. Also, UK March Average Earnings Including Bonus (3Mo/Yr) came out near 3.2% over 3.4% estimates. On the Brexit front, things continued to slow progress. UK Theresa May and Corbyn have scheduled to meet shortly.
The Loonie remained capped under the active resistance line near 1.3488 levels amid a light calendar day. During the Asian trading session, the pair had fallen to 1.3454 levels over crude upsurge. The Crude Oil West Texas Intermediate (WTI) Futures was 2.29% up. The Oil prices soared as reports suggested a second attack on a Saudi State Oil Company today. This time, the attacks got identified as drone attacks. Serious supply tensions got waved in the market elevating the crude prices. The changes in the Crude prices have an inverse impact on the Loonie. Hence, the USD/CAD pair dropped twice near 1.3457 levels during the day.
The safe-haven pair remained on recovery mode today, after losing 60 pips yesterday. The pair started trading from 109.17 levels and further got uplifted to 109.75 levels. In the Asian session, the pair managed to stay above the support point near 109.55 levels. But in the European session, the pair suffered a major pullback and marked a fresh low near 109.51 levels.
However, the pair grabbed some quick upward momentum and was hovering near 109.60 levels later. Recent reports suggested that Trump will inform about the final decision over US-Sino trade deadlock in three to four weeks. This news offered the investors to get relief from trade war tensions. The American Dollar got benefited out of Trump’s statements and thereby elevating the USD/JPY pair. Meanwhile, the US economic data came out bearish than anticipated. The pair went slightly down after these indexes got released in the European session.
The Euro pair weakened after the Euro economic data came out bearish. The pair opened up near 1.1233 levels and remained consolidated near 1.1240 levels. After marking a fresh high near 1.1243 levels the pair took a downturn and reached to 1.1210 levels laterwards. At 15:00 GMT the pair hovered around 1.1210 levels. Today, the ZEW May Economic Sentiment for Germany and EMU, recorded negative figures. The consensus had estimated the Deutschland’s investor sentiment to go up near positive 5 percent but came out as negative 2.1 percent.
The EUR/USD pair suffered plunge subsequently to this bearish reports. On the USD front, the Greenback improved as the market observed some stabilizing news over US-China trade talks. Lately, the trade tensions got escalated after China retaliates over the US-led tariffs hike. While today the US President discussed having settlements with China over the ongoing Trade dispute. His opinions have cooled the growing market tensions and allowed the Green money to uplift. The improving Greenback resulted in the plunge in the EUR/USD pair.
This article was originally posted on FX Empire
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