EU Morning Report – Dollar weakness across the board as risk appetite soars!
Here are the latest Financial News:
EU Morning Report – Dollar weakness across the board as risk appetite soars!
- The Dollar was sold across the board as demand for the safe haven eased and the market bought stocks and commodities aggressively. Company Earnings were strong but economic data was a little weak with Weekly Jobless Claims at 464k vs. 449k previously. In US stocks, the DJIA traded up +201 points closing at 10322, S&P +24 points closing at 1093 and NASDAQ +58 points closing at 2245.
- The Euro rallied aggressively after some strong economic data and improvement in sentiment helped lift the pair back to the 1.2900 level. The market is eagerly awaiting the European stress tests released at 1400 GMT. July EU Manufacturing PMI jumped 56.5 vs. 55.2. EUR/USD traded with a low of 1.2736 and a high of 1.2934 before closing at 1.2890. Looking ahead, German July IFO forecast at 101.5 vs. 101.8 previously.
- The Japanese Yen had a volatile day with the market testing Y110 support on the EUR/JPY and month lows on the USD/JPY at Y86.30 before profit taking and a reversal of stock market direction ignited a fierce short covering rally. Overall the USDJPY traded with a low of 86.32 and a high of 87.25 before closing the day around 87.10 in the New York session.
Currency to watch out for: EURUSD & USDJPY
- The EURUSD pivot point is at 1.2840 with a preference to enter into Long positions at 1.2840
- The USDJPY pivot point is at 86.75 with a preference to enter Long positions at 86.75
Today’s calendar and market movers:
- European Stress Test Results
- German IFO Business Climate Expected at 101.6
- UK GDP year on year expected to grow at 1.1 %
- CAD Core CPI year on year expected at 1.8%
Equity Markets:
- US equities closed positively yesterday with the S&P500 at 2.25% and the DJIA at 1.99%. The European bourses were positive with the FTSE up 1.90% the DAX and the CAC closing at 2.53% and 3.05% respectively. The NIKKEI and the HSI at the time of writing is 2.09% and 1.09% respectively.
Source: Easy Forex
Recommended Forex Brokers: AvaFX and Forex Yard
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