Market Analysis

The euro is slightly up against the US dollar

FOREX

The euro is slightly up against the US dollar during the early part of Thursday’s trading session, as the greenback recedes from the multi-month highs reached earlier in the week. The US currency had been supported by pandemic-related fears during the first part of the week, due to its safe-haven status. Such fears have now dissipated, as strong earnings improved the mood of investors and boosted risk appetite with notable gains in global stocks. Meanwhile, it’s interesting to see the euro, ahead of today’s ECB meeting, recovering from the lows reached on Wednesday; the general consensus is that the changes to their policy strategy, offering more flexibility towards inflation, will eventually become a headwind for the single currency with rates likely to remain low for longer.

Ricardo Evangelista – Senior analyst, ActivTrades

 

GOLD

Gold is edging lower during Thursday morning, following a rise in risk appetite in global markets. Investor sentiment rose due to the galvanising effect of strong earnings that boosted global stocks and outweighed lingering uncertainty caused by the advance of the Delta variant. Another factor that may end up weighing down on gold is the bearish outlook for the euro. Today’s ECB meeting is expected to rectify the central bank’s strategic review, which will make it more likely for rates to remain lower for longer in the eurozone. This new approach is likely to represent a headwind for the single currency and offer support to the US dollar; a scenario that could potentially drive further losses for the precious metal.

Ricardo Evangelista – Senior analyst, ActivTrades

Source: ActivTrader

 

 

 

FOREX

The dollar remains supported during early Wednesday trading, despite the fizzling-out of some of the risk aversion that propelled it to multi-month highs during yesterday’s session. Fears over the resurgence of the virus continue to linger, especially in the Asia-Pacific region, but stocks in Europe and the US were in the green at the end of Tuesday’s session, rebounding from the lows of Monday. The fact that the safe-haven dollar is still on the front foot points at investors’ confidence in the strength of the American economy and the anticipation that the Fed will be tightening policies sooner rather than later.

Ricardo Evangelista – Senior analyst, ActivTrades

Source: ActivTrader

 

OIL

Oil is trading flat this morning appearing to have found support as risk appetite increases once again. This support comes after the pronounced falls registered during the last few sessions, which were triggered by apprehension over the impact the Delta variant might have on the speed of the economic recovery, as well as the agreement between OPEC+ countries to increase production.

Ricardo Evangelista – Senior analyst, ActivTrades

Source: ActivTrader

 

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