The starting of the last week was very gloomy as there was no high impact scheduled news. Most of the professional traders’ experienced ranging market in the early part of Monday’s trading session. But things drastically changed after the mighty U.S dollar became weak during the New York trading session. The EUR/USD pair bounced from the critical support level at 1.17233. All the professional traders retained their bearish sentiment for the Green bucks due to the ongoing crisis in the U.S economy. However, the optimistic dollars bulls were still waiting on the sideline for the hawkish speech from FED chairperson Janet Yellen on the scheduled FOMC meeting minute. This pending rate hike decision from the FED officials refueled the dollar with some bullish strength.
On Tuesdays, the economic data release of U.S CB Consumer Confidence came out 121.1, better than the forecasted data of 116.5.Though the data was significantly positive the dollars bulls failed to establish any prominent buying pressure in the global market. Most of its major rivals traded higher posting a new high on Tuesday’s trading session. The British pound also gained decent bullish strength after the hawkish speech from the MPC member Haldane. Most of the leading investors considered his speech as a fresh bullish catalyst for the GBPUSD pair.
The Kiwi dollar traded significantly higher on Wednesday’s trading session after the hawkish speech of McDermott Speaks, Assistant Governor of RBNZ. Followed by this, the RBA Governor Philip Lowe came up with a strong positive speech which signified the ongoing stable performance of the Aussie economy. Such an optimistic statement from the RBA Governor pushed the AUD/USD pair towards the 0.7980 resistance level. But the Bulls were lost a small portion of their bullish steam due to negative data release of the CPI q/q of the Aussie economy. The British pound gained another decent bullish momentum after the release of the Prelim GDP q/q data which came 0.3% as expected.
The long waited scheduled FOMC meeting minute disappointed the optimistic dollars bulls in the early part of the Thursday trading session. FED chairperson clearly stated that their economy was not doing well from the very beginning of the year 2017 despite they have hiked their interest rate for two times. Regarding the projected third rate hike decision, she announced there might a significant delay in the third rate hike due to the ongoing financial crisis in the U.S economy. However, if things start to change in their economy than they might think for another rate hike at the end of the year 2017.Though most of the U.S economic sector is struggling hard the labor force data is showing a great deal of improvement.
The Core Durable Goods Orders m/m also came out negative for the U.S economy on Friday’s trading session. The actual data was 0.2 %( forecasted data was 0.4%) and this gave the dollar bulls another tremendous bearish threat. The Unemployment Claims went up to 244k which clearly showed the major financial crisis in the U.S economy. Most of the major rivals gained decent bullish strength prior to the closing of the last trading week.