Dollar Down, European Stocks Rebound: Market Update
AvaTrade | Jul 25, 2017 08:34AM ET
The euro is hovering around its highest point in two years thanks to robust growth forecasts in the eurozone.
h3 USD/h3The dollar is down 0.1% ahead of tomorrow’s Federal Funds Rate decision. While the Fed are expected to keep interest rates unchanged investors will be closely listening for any clues on the balance-sheet reduction scheme.
h3 /h3 h3 EURUSD/h3The currency pair is waiting for a market driver. Possible bullish movement towards 1.168 in the next few hours as the moving averages curve tips upwards.
The Australian dollar added 0.2% as attention refocuses on the June quarterly inflation data and a speech given on monetary policy from the Reserve Bank of Australia.
h3 /h3 h3 AUDUSD/h3The Japanese yen erased the losses it made early Monday and headed for its sixth consecutive day of gains as investors hedge risker bets.
h3 /h3 h3 USDJPY/h3Possible bullish movements towards 112.42 as the moving average curves upwards. The RSI indicates the currency pair is in overbought terrain however has not yet reversed back below 70.
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Earnings season continues this week with; Facebook (NASDAQ:FB), Deutsche bank, BNP, UBS and much, much more coming up. Yesterday, the S&P 500 closed 0.1% lower while the tech-heavy Nasdaq index shot up 0.4% to a historical close of $6,410.
European sentiment was subdued after yesterday’s poor economic data. Investors are concerned that Europe’s recovery may be tampered by consistently weak inflation readings. However, investors have managed to shake off the pessimism, adding to their bullish bets and taking European equities back into the green.
h3 Commodities/h3Switching gears over to the oil market now, the industry is still trading under that psychological level of $50.
Oil rose yesterday after Saudi Arabia said it would cap exports at 6.6 million barrels a day in August. We have crude oil inventories tomorrow so let’s see if that gives oil the boost it needs.
h3 /h3 h3 Crude Oil/h3
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