Dolar Index close to last month price
The dollar index is hovering very close to where it was back at the beginning of last month during early Tuesday trading, having erased the gains accrued during March. Over the first quarter of the year the greenback rose thanks to treasury yield gains fuelled by the belief that the resurfacing of inflation would force the Federal Reserve to bring forward the timing of tapering. What is happening now is a mirror image of last quarter; as investors start to take the Fed’s word at face value, believing that the current accommodative policies are here to stay, treasury yields started falling and so did the dollar. As things stand there could be scope for further dollar losses.
Ricardo Evangelista – Senior Analyst, ActivTrades
European shares followed the trend registered overnight on Asian markets by drifting lower on Tuesday, as investor appetite for riskier assets decreased. This “defensive” mood came after investors witnessed renewed virus spikes in some areas, while waiting for further evidence of an ongoing economic recovery, after stock prices hit record highs. Trader focus is, more than ever, directed towards macro data in the search for new bullish catalysts that will allow them to increase their exposure to growth assets. No major economic data will be expected today so investors are likely to pay close attention to corporate results, with earnings from
Procter & Gamble, Netflix, Johnson & Johnson, Danone, Atos and Vallourec due later today..
Pierre Veyret– Technical analyst, ActivTrades
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