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Forex Daily Recap – Greenback Boosts Up as Powell Reiterated his Stances

USD Index

Bears had continued to take full control over the Greenback in the Asian trading session. The USD Index went digging down the three-month bottom marking the lowest point near 95.83 levels. The poor early performance reflected in the Greenback’s movements came following positive France data. This June Business Climate data reported 0.99% higher than the 101 estimates. Adding to the negative sentiment, the S&P/Case – Shiller Home Price Indices missed estimates. The Indices reported 2.5% over 2.6% market expectation. The overall effect got nullified following the release of the April MoM Housing Price Index. The market had hoped the reports to come around 0.2%. Anyhow, the actual reports recorded 0.2% above the consensus estimates.

US Dollar Index 60 Min 25 June 2019
US Dollar Index 60 Min 25 June 2019

Also, the May MoM New Home Sales published 54K lower than the 0.680 million expectation. The early losses accumulated in the pair got recovered in the evening after Fed Chair’s speech. Powell said, “The Fed gets insulated from short-term political pressures – what gets often referred to as our ‘independence’.” Hence, the Fed would remain stubborn on its stance to keep the rates unchanged irrespective of an economic downturn. The USD Index skyrocketed following Powell’s speech marking the day’s highest point near 96.36 levels.

AUD/USD

The Aussie pair had triggered a strong uptrend on June 21 near 0.6905 levels. The pair had kept hold of the positive trend in its movements in the last few sessions. However, the AUD/USD pair appeared to move out of the uptrend bracket today. After the marking the day’s high near 0.6978 levels, the pair took a downturn, dropping to 0.6943 levels. This sharp pullback got developed after the US Dollar Index surged to 96.36 levels. The upward push came after the release of Fed’s Chair Powell’s speech. Earlier the day, RBA’s Bullock talked about “Modernizing the Australian Payments System” in Berlin. Somehow, Bullock didn’t mention anything relevant to the monetary policy outlook.

GBP/USD

After opening the day near 1.2740 levels, the pair displayed some slight upward movements. The pair was taken to a four-day high near 1.2782 levels. From there, the trend seemed to reverse and took the downward journey at 07:10 GMT. The 30-year Bond Auction came around 1.421% over the previous 1.739%. Also, the CBI June MoM Distributive Trades Survey – Realized was far below the estimates. The actual reports showcased the reports to come around -42% over -10% market hopes.

GBPUSD 60 Min 25 June 2019
GBPUSD 60 Min 25 June 2019

Meanwhile, chances remain high for Boris Johnson to replace the UK PM Theresa May by winning the Tory Leadership race. Boris seemed to change his Brexit stance showing denial for a No-deal Brexit on October 31. The GBP/USD pair got pushed even below the 1,2674 levels, marking a daily low mark. The reverting price action in the Greenback that took place after the release of Fed’s Chief Speech added more strength to the Cable bears.

USD/CAD

After rebounding from robust 1.3150 support level on Friday, the pair had then managed to continue a healthy range bound performance. The upper limit of the consistent range stood near 1.3228 level. The pair appeared to clinch near these bottom levels after a strong downtrend. The overall picture finds similarity with a bearish flag pattern. This pattern signals that the USD/CAD pair might continue to display a negative trend in the upcoming sessions. In the meanwhile, the Crude prices remained steady near $57.88 bbl as focus diverted from US-Iran tensions to US-Sino trade talks. The two parties would meet up in the upcoming G20 Meeting. Both the counties would discuss over resolving the issues in the best possible manner.

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This article was originally posted on FX Empire

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