Daily Wrap Up – 7 June

The Australian dollar shrugged off data indicating that Australian economy slowed in the first quarter of this year, following strong growth in the last quarter of 2016, but reassured markets that the economy grew for the second straight quarter after contracting in the third quarter of 2016. The Australian dollar reached the highest level against the US dollar since April 24 at 0.7566 after breaching an important resistance at 0.7512.

The euro fell against the US dollar by more than 60 points to the level of 1.1203 before rebounding to the levels of 1.1280, following the news that the ECB during its meeting tomorrow due to reduce inflation expectations, markets will turn attention on Thursday to the press conference of Mario Draghi, Governor of the ECB trying to conclude the future of the euro zone monetary policy.

US crude oil prices fell almost  2$ to its lowest level in nearly a month at  45.91$ a barrel, following US crude inventories rose by 3.3 million barrels for the week ended May 26, after eight consecutive weeks of decline. Brent crude fell from a day high of 50.12$ a barrel to a one-month low of 48.12$ a barrel.

In preparation for the British elections tomorrow, the British pound rose against the US dollar to reach its highest level since May 25 at 1.2970 retreated from the upper line of the ascending channel on the hourly time frame, currently trading at the levels of 1.2935.