Market's Price Behavior 5.31

Understanding & Knowing how it works! 

The recovery of the US Dollar have was renewed and accelerated after stronger Chicago PMI numbers. Today's economic reports were obviously mixed. Meaning that the Fed would remain on its path to taper-off asset purchases for the year.

The recovery in the USD was likewise supported by the upward revision of the University of Michigan's Consumer Confidence index. Although, the preliminary numbers showed that consumer sentiment improved significantly in May. But the other story affecting the euro today were Bank of Italy Governor Visco's comments on the potential for another rate cut which affected the EURUSD more than the disappointing umeployment data earlier during the European session.

As the Euro dropped to as low as 1.2943 after the statements; affecting the EURGBP cross rates to move lower as well @0.8527. Although, a slight recovery did occur after the news, but the USDx recovered from its lows @83.00 levels and currently working its price back up to the all important levels @83.50 basis point. Meanwhile, the EURGBP cross have likewise recovered from a low @0.8527 and is currently @0.8550 to this writing. Click to continue