Daily Wrap Up – 18 May

18 May 2017 04:29 PM

US dollar recovered during trading day thanks to positive of economic data, as weekly unemployment claims printed the lowest reading since 1988, and declined to 232K in the week ended 12 May, that’s was better than markets expectations referred to 240K, compared to last reading at 236K. Also, Philly Fed Manufacturing Index managed to print the second best reading in 2017 at 38.3 during May.

Also, quotes from Mnuchin before the senate banking committee helped the dollar. As EURUSD has declined from highest level in six months  at 1.1171 approaching to important support at 1.1081.

In the UK, retail sales printed highest reading since December 2013, supported by improved weather conditions during the recent Easter holidays, as it raised by 2.3% in April on monthly basis, and 4% on yearly basis. On the other hand, Thersa May, UK Prime minister still on the top of polls on the general elections scheduled for next 8 June.

The react of British Pound came quickly as GBPUSD reached highest level since October 2016 at 1.3047, before declining quickly approaching uptrend on 4H chart.

In Australia, the economy continued to add jobs but part-time jobs has the most of this increase, causing some concern about the quality of jobs created by the economy, but overall employers continued to increase employment for the seventh month in a row, This reflects the broad recovery of the Australian labor market. The Australian dollar rallied against its US counterpart after the data hit its highest since May 3 at 0.7466 before quickly retreating immediately to 0.7400 levels.

On the oil markets, crude oil prices continued to recover after $ 48 a barrel provided strong support, rising to near $ 49 again. This comes in the light of the anticipation of the markets for the OPEC meeting during this month and the hopes related to the possibility of extending the agreement to reduce production.

Tags: USD EUR oil

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