After struggling in the last few sessions, the US Dollar Index made near the two-week top level. At 15:22 GMT, the index had reached the daily high of 97.36 levels. The greenback launched the rocket near 96.96 levels, landing near 97.41 levels, 0.46 percent up. The rigorous upward push gets discounted to the poor German and Eurozone events. Any downward movement in any of its rival currencies, especially the EUR/USD, will help the greenback equally upsurge.
The upliftment initiated with lower-than-expected German March MoM PPI, German April Markit Manufacturing PMI, and Eurozone April Markit PMI Composite. The US Dollar bulls gained more power on the back of sound US retail data released during the day. US March Retail Sales Group Control reported 1.0 percent in comparison to the consensus estimate of 0.4 percent. This time, the US Jobless Claims figures reported low numbers, making the investors more intrigued. Today, the index displayed various gaps while moving up, showing the willingness among the greenback buyers. Notably, the Index also faced few corrections over lower-than-expected April reports like the US Markit Services PMI and PMI Composite. However, the greenback managed to rebound from such small losses later the day.
The euro pair which remained in a consolidation phase in the last North American session, was pushed off the cliff today. The EUD/USD had fallen steeply 55.36 percent on the backdrop of below-expected German April Markit Manufacturing PMI figures. The PMI came around 44.5 points while the market expected near 45.0 points.
The EUR/USD, however, continued the plunge rally following poor Eurozone April Markit PMI Composite of 51.3 points. Finally, the euro pair found a stoppage to bounce back near the active support line of 1.1232 levels. The US Dollar benefitted the most out of this euro plunge story today.
The Cable remained second in the list to tumble amid EUR/USD slump and greenback upliftment. In the Asian trading session, the poor EUR/USD shared some of its plunges to the GBP/USD making it reach near 1.3018 levels. The pair tried to slightly recover from the early losses after the release of some positive UK March Retail Sales figures. The March Retail Sales YoY reported as 1.1 percent in comparison to the consensus estimates of 4.6 percent.
Instead, more surprising was the positive Retail Sales (including and excluding Fuel), on which market bet to report negative. Things appeared to get better but lost complete hold after the release of robust US Retail data and Jobless Claims numbers. The pullback in the pair went way beyond, breaching the previous robust support line of 1.2989 levels. At 17:13 GMT, the cable was trading near the lowest vicinity region of 1.2984 levels.
The Aussie pair that started the day near 0.7171 levels made the day’s high of 0.7199 levels in the Asian session itself.
The pair had undergone such a significant jump after the Australian March Employment Change numbers came out as 25.7K. Adding to this, the March Unemployment Rate reported in-line with the street expectation of 5.0 percent. The AUD/USD traded near the day’s low of 0.7136 levels at 16:40 GMT.
This article was originally posted on FX Empire
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