The Forex Market got surprised with the release of some astounding Chinese macro data. The most crucial Chinese Gross Domestic Product computed for the first fiscal quarter (both YoY & QoQ) reported well above the consensus estimates. Along with this, the Chinese March Retail Sales figures reported as 8.7 percent, 0.3 percent above the expected 8.4 percent. Adding to all the positive data, the Chinese Industrial Production came out around 2.6 percent higher than the market expectation.
The combined effect of all these robust Chinese data pushed down the USD/CNY from 6.7108 levels, straight to 6.6916 levels. However, the pair underwent further plunge later the day landing near the lowest attained level in April.
In the last five sessions, the EUR/USD rebounded for the third time today from the strong 1.1323 resistance. Following solid Chinese macro data, the euro pair had a significant 0.39 percent jump during the Asian session. Nevertheless, the pair lost most of the accumulated gains in the later trading hours. The fall got triggered after the release of Eurozone February Current Account reports which failed to meet the consensus estimates. Later the day, above-the-consensus Eurozone February Trade balance and March CPI had attempted to score for the EUR/USD. However, the reports lacked appeal making the plunge in the pair deepen reaching near 1.1292 levels. In the meantime, the US had pretty impressing report figures during the day with robust February US Trade balance and Wholesale Inventories.
The cable had continued yesterday’s downward rally into today’s session. And this time, the pair again reached the lowest vicinity near 1.3031 which last touched on April 9. The GBP/USD had found some upward space in the Asian session developed on bullish-expected economic events for the day. The pair had soared from 1.3035 levels touching 1.3064 levels on the back of the speculative market expectation. Unfortunately, things came out upside down.
The UK March Consumer Price Index (CPI) YoY reported 1.9 percent in comparison with the street analysts’ expectation of 2.0 percent. Also, most of the significant UK data like the March Retail Price Index (both MoM & YoY), March Producer Price Index (PPI) Core – Input & Output (YoY), and Core March CPI (both MoM & YoY) missed the estimates. However, at 15:30 GMT, the cable had given up only half of its accumulated gains during the morning session. In the interim, Brexit headlines remained silent on the backdrop of Easter recess. The pair had experienced some slight upward force on slow progress over cross-party talks on Customs Union.
The loonie initiated a substantial pullback from the highest point of 1.3400 levels yesterday. The fall further worsened in today’s trading session reaching near the month’s low of 1.3272 levels. This time, however, the crude remained low amid EIA’s negative crude inventory data. The primary rationale behind the fall in the USD/CAD was the significant upliftment in the CAD on the back of sound CPI data. The BoC announced the Canadian March CPI YoY data around 0.3 percent above-the-consensus estimate of 1.3 percent. Laterwards, the pair got uplifted on weak Canadian February Trade data and the favorable US trade balance reports. The pair was trading near 1.3344 levels at around 18:00 GMT.
This article was originally posted on FX Empire
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