The Yuan pair remained oscillating near the three month top mark on the back of mixed economic Chinese data. The jump observed in the pair’s movements on Friday had lifted the USD/CNY pair to 6.9232 levels. Before that, the pair was trading, maintaining a range bound approach between 6.9171and 6.8950 levels. Today, the pair managed hold grip over the top levels and also tested 6.9357 sound resistance levels. However, the pair failed to make a breakthrough and remained capped within the 6.9357 marks. At around 02:00 GMT, Chinese trade data came out. May CNY YoY Imports report recorded 7.8% lower than 15.5% forecasts. Also, the exports data for the same period came out as -2.5% over 15.9% estimates. Anyhow, the May Trade Balance USD was slightly higher-than-estimates reporting near $41.65 billion over $20.50 billion expectation.
The Greenback showed some recovery price actions on Monday trading session. The Index had dropped last week over weaker Employment data and Average Hourly Earnings reports. The USD Index made the opening today near 96.71 levels and kept trending upwards throughout the day. The Index marked the day’s high near 96.93 levels. Investors seemed to lose interest over rivals like the Cable, Euro, and Yen.
Trade war tensions between the US and Mexico lowered as Trump took back his threat to impose Mexican tariffs. An ease in the trade conditions drastically improved the overall market sentiment. On the economic event front, the April JOLTS Job Openings reported higher than market estimates. The Job Openings data came out as 7.449 million over 7.240 million expectations. Such positive employment data provided a boost to the Greenback. Nevertheless, the US Dollar Index was trading near 96.79 levels at around 16:43 GMT.
During the weekend session, the Mexican Peso pair showcased a Gap-Down opening. The pair had started on Sunday near 19.3027 levels over the previous closing of 19.6193 levels. The slump in the USD/MXN pair developed as Peso currency uplifted more than 2% over the optimistic US-Mexico trade deal. President Trump took the Mexican tariffs intended to increase every month off the table on Sunday gradually. Over to the movements, the pair attempted to breach the robust resistance line near 19.3059 levels two times today. Anyhow, the pair lacked the desired energy to knock off the healthy resistance levels. On the downside, the USD/MXN pair found critical support near 19.1372 levels multiple times on Monday. Trump proclaims his win over the counterpart Mexico with the help of tariffs. President also added that threat to impose tariffs allowed the deal to happen within two days. In the agreement, Mexico ensures decreasing the overall illegal immigration issue in the US.
Investors seem to lose confidence over the Euro pair and slowly shift towards currently safe-haven USD Index. The negative sentiment had developed around the pair following ECB’s last week announcement. The policymakers mentioned that the Bank would cut rate if an economic slowdown takes place.
The pair started trading today near 1.1321 levels and went drowning in the Asian session. The early tumble in the EUR/USD pair found significant support near 1.1290 levels and kept rebounding from the same point. There remained hardly any EUR-specific event today to deviate the pair’s movements on account of Whit Monday holiday. Meantime, the GBP/USD stumbled over adverse UK Manufacturing and Industrial data.
This article was originally posted on FX Empire
More From FXEMPIRE:
- Pound is not Sad Without May
- EUR/USD Price Forecast – Euro chops back and forth
- Crude Oil Price Update – Rally Fizzles After Confirming Weekly Closing Price Reversal Bottom
- USD/JPY Price Forecast – US dollar gaps higher
- Natural Gas Price Prediction – Natural Gas Prices Rebound as LNG Exports Rise
- GBP/JPY Price Forecast – British pound rolls over