The US dollar is recording gains
The US dollar is recording gains versus the euro during early Tuesday trading. However, the greenback’s performance during the month of April has been subdued, when compared to that of the single currency, as Europe’s improving health and economic outlook offered support to the euro, while the dollar was weighed down by the brighter global outlook that triggered the unwinding of safe-haven trades, as well as by the Fed’s commitment to its current accommodative policies. It is therefore interesting that the American currency is finding support ahead of the FOMC meeting starting today; a dynamic that reflects the expectations of some investors that the central bank may choose April to hint at future change in direction. This is unlikely though, with June’s meeting appearing more likely to bring any substantial changes in direction. Until then, the dollar may remain under pressure.
Ricardo Evangelista – Senior Analyst, ActivTrades
Market sentiment remains uncertain as the end of the month approaches while the short-term outlook continues to be torn between solid corporate results and spiking virus cases. However, while most concerns come from emerging countries, the fact that developed nations keep on registering solid economic data amid the success of the vaccine rollout is likely to sustain the bullish trading stance in the mid-term. With almost no significant macro data in today’s agenda, apart from the US CB Consumer Confidence, investors’ eyes will remain on earnings reports with results from HSBC, Alphabet and Schneider Electric.
Pierre Veyret– Technical analyst, ActivTrades
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