The euro to its highest level this year and the dollar is increasing its losses
The euro soared to the highest level in over a year while bond yields and global shares also climbed, as an ongoing barrage of coordinated hawkish comments from central banks signaled the era of easy money might be coming to an end for more than just the United States. S&P futures were fractionally in the green following the best day for US equities in two months, as banks climbed after passing the Fed’s stress tests and announcing bigger than expected shareholder payouts.
In commodities, commodity currencies (USDCAD -0.06%, AUDUSD +0.37%, NZDUSD +0.10%) supported by positive crude prices, while a 3% rise in iron ore has also buoyed AUD strength. The fall in the USD index has led to broad-based gains seen across the commodity spectrum, but noticeable is the lack of traction in Gold as the risk parameters have counteracted this. The yellow metal is back under USD1250.00, while Silver continues to trade a modest range up and down the USD 16’s, but we have seen a stronger impact on base metals and Oil.
EURUSD – The Euro continued its surged on Thursday as ECB’s Draghi continued to have an effect on the common currency reaching a one-year high of 1.1435 before tumbling down back towards the 1.1400 support.
GBPUSD – A Momentary Surge in the Currency at given the pair enough momentum to reach and touch the 1.3000, the first time since May of this year. It encountered heavy selling after that giving up all the gains it posted as it trades near 1.2970.
USDJPY – The USD continues it 4-Day upward movement after yesterday’s movement ended with a hammer which is a bullish sign and breaking above the top only gives more momentum to the already strong pair.
USDCAD – Commodity Currency USDCAD continues for the 4th day downward, however, there seems to be some stalling in terms of momentum. After the rise in the Crude Oil Prices, the currency broke through the 1.3100 with relative ease and is poised to test the 1.3000 for the first time since February of this year.
AUDUSD – 5 straight days of positive momentum on the AUDUSD. The momentum on the pair could not be dented even though a Shooting Star was formed on the third day which must have dented momentum but increased positive pressure sent the pair towards 0.7675 and higher.
Dow Jones – The Index was met with some selling pressure in the early hours of the morning before hitting the 25-EMA and rising back up negating all the losses it posted. Currently, the index is trading near the 21440 resistance zone as a break above 21450 will send it towards higher ground most likely 21500.
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