After extending the previous day’s losses into today’s session, the cable lost almost all the gains accumulated since Monday. The fall that got triggered the last day at around 1.3120 levels continued today near 1.3101 levels. The primary rationale behind the plunge was the sparse UK unemployment data. The Claimant March Count Change which highlights the actual number of unemployed individuals reported a higher count of 28.3K.
This news along with the other weak employment data added more selling pressure on the GBP/USD. In the meanwhile, the greenback came in place to further worsen the pain in the cable. The US March MoM Industrial Production figures reported a negative number. This time, the GBP/USD had lost control and suffered severe pullback breaching the strong support line of 1.3054 levels. On the Brexit front, there remained no headlines on the backdrop of Easter Recess for the House of Commons. Talks continue unresolved between the ruling party and the opposition over Customs Union issue. However, UK PM May will endure some extra efforts so that to avoid sitting in the EU elections.
The euro started the day’s session on a slightly negative note amid early upliftment in the US Dollar Index. However, the EUR/USD managed to rebound from the morning losses after the release of strong German report. The ZEW broadcasted the April Economic Sentiment for Germany as 3.1 points which remained well above the market expectation of 0.8 points. The later massive rise in the pair helped it lift higher, 0.16 percent up, making it touch the day’s high near 1.1313 levels.
However, the EUR/USD couldn’t uphold at such high levels for an extended period. The pair fell tremendously after the release of a below-the-consensus German April Current Situation reports. Nevertheless, another positive Eurozone sentiment index provided some support to the tumbling cable taking it 1.1310 levels. In this manner, the EUR/USD continued seesawing during the day.
Following the last day’s weak Canadian business sentiment reports, the pair had uplifted reaching near 1.3380/1.3400 levels. The pair tried hard to sustain the higher vicinity, also had attempted to breach the sound 1.3392 resistance level. However, things went out of control amid the release of weaker US and Canadian reports. The greenback underwent pullback on the back of weak US Industrial data.
Adding more intense to the fall in the loonie pair, Canadian Feb MoM Manufacturing Index reported a negative 0.2 percent in comparison to the expectation of around 0.0 percent. Also, the Crude Oil WTI Futures remained elevated near $63.70 per barrel, later today, contributing to the overall slump. Lastly, the USD/CAD was trading near the mid-vicinity of 1.3362 levels at 16:30 GMT.
During the Asian session, the Aussie pair fell steeply dropping 0.49 percent, post-release of RBA’s dovish meeting minutes. The Central Bank had mentioned that it sees fewer chances of an interest rate hike in the near term.
However, after remaining consolidated near 0.7145/50 levels, the AUD/USD receded from the earlier losses reaching 0.7180. Notably, the upliftment developed on the back of falling greenback. Lower-than-expected US Industrial figures disappointed the US Dollar Index bestowing the AUD/USD . The Aussie pair was trading near the start point of the day of 0.7172 levels at 17:00 GMT.
This article was originally posted on FX Empire
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