Yahoo Finance Forex Daily Recap – Bears Continued Throttling the EUR/USD Following Sparse German IFO Reports
EUR/USD
The Euro pair back to where it started at the start of the month. During the European session, the pair hit the lowest vicinity near 1.1180 levels. The pair reached this day’s low, breaching the active resistance line of 1.1185 levels, earlier marked on April 2. Now, coming to the rationales behind this plunge in the pair. In the Asian session, the pair had opened up low as investor sentiment seemed to weigh more on the US Dollar Index.
The EUR/USD was pushed further down after the release of sparse German IFO reports. All the German April Current Assessment, Expectations, and Business Climate came out lower-than-expectation. Following the release of such weak reports, the EUR/USD got hammered from 1.1223 levels to 1.1180 levels. The US Dollar Index benefitted the most out of the Euro fall. The greenback skyrocketed reaching a new day’s high near 97.85 levels.
USD/CAD
The loonie pair made a positive opening soaring from 1.3428 levels reaching near 1.3453 levels. The pair jumped this 25 pips on the back of optimistic updates on the US-Sino trade agreement. Reports had suggested that the US Officials will leave soon to Beijing to resume trade talks. The USD/CAD pair jumped around 71 pips in a matter of seconds following the BoC’s monetary statement. The Bank officials decided to keep the interest rates unchanged at 1.75 percent, noting economic sluggishness. This news undermined the Canadian Dollars, taking the loonie pair upwards. In the meantime, the EIA reported a massive pile of US Crude Inventories. The Stocks change computed since April 19 recorded 5.479 million, in comparison to the expectation of 1.255 million. Crude prices fell following the EIA reports reaching near $65.70 per barrel. The crude upliftment gave an extra boost to the USD/CAD marking the day’s high near 1.3520 levels.
AUD/USD
The AUD/USD pair opened up on Wednesday morning near 0.7091 levels and significantly slumped 0.75 percent. The Aussie Dollar later remained in the range of 0.7049/24 levels. The AUD/USD had then slipped to 0.7031 levels creating a new lowest record for the month. The Asian trading session break down occurred after the release of Australian CPI. Things worsened after reports revealed a drop in US-Aussie T-Bond yields.
The street analysts had expected the Aussie CPI to come near 0.4 percent. However, it recorded around 0.1 percent down. Laterwards, the RBA Trimmed Mean CPI emerged more bearish than anticipated. The market was shocked over the Australian inflation which touched the lowest 1.3 percent in three years. Later the US-Aussie 10 year Government Bond yields reduced to negative 0.76 basis points. Notably, this drop in the bond is the lowest level in 38 years. In this way, the pair suffered a huge dropdown effect and further pushed to toggle between 0.7027 levels.
USD/JPY
The pair started with 111.77 levels during the Asian session and seesawed throughout the day. The USD/JPY pair tumbled reaching creating day’s fresh lows near 111.69 levels. Things reversed after 10:30 GMT, and it continued to stir up reaching 111.74 levels. The USD/JPY pair had slipped following the Japanese Economic Indexes. These indexes appeared more bearish than expected which undermined the JPY to boost up. The safe heaven pair was hovering near 111.96 levels at 17:46 GMT.
This article was originally posted on FX Empire
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