Euro Climbs, Dollar Dives: Market Update
AvaTrade | Jun 28, 2017 06:55AM ET
The euro touched a one-year high on the prospect of higher interest rates.
On Tuesday, European Central Bank president Mario Draghi announced he was ‘’confident’’ that the bank’s monetary policies would ignite inflationary pressures in the region, the euro strengthened 0.1% and reaching a ten-month high as a result.
The rally looks set to continue, supported by an upward sloping moving average.
h3 USD/h3Meanwhile, the dollar is weaker, thanks to the hawkish sentiment from president Draghi and the delay on US healthcare legislation.
The greenback is set to close at its lowest point since mid-October.
h3 EURUSD/h3The Canadian dollar jumped 0.3% after Bank of Canada Governor Stephen Poloz said that interest rate decreases have ‘’done their job’’.
The CAD looks set to rise further supported by an upward sloping moving average.
h3 USDCAD/h3The Japanese yen has weakened 1% over the past two sessions. The currency is slightly down as investors shrug off potential geopolitical risks.
h3 USDJPY/h3Possible bearish pattern forming with a support of 110.90.
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Brent oil, the international benchmark, is down 0.1%, ending a four-day rally with a 1.8% gain on Tuesday.
This commodity looks set to lose even more gains, supported by a downward sloping momentum and moving averages curve.
This precious metal has climbed 0.4% thanks to the weaker dollar.
Gold looks set to inch lower in the next few hours thanks to a downward sloping moving average and momentum curve.
Volatility in the US jumped by the most in 6 weeks as investors contemplate the array of issues weighing on US sentiment. The International Monetary Fund removed assumptions that Donald Trump will stimulate demand through spending on infrastructure and tax cuts.
The bearish oil market has also depressed equity prices and the continuing sell-off of technology stocks.
h3 European Equities/h3The FTSE 100 is flat thanks to the rising pound. Germany’s Dax 30 has lost 0.08%. Big exporters lead the declines as the euro strengthens.
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