Forex: Europe, News roundup, Dollar continues to show off, Due to the vacation season in several areas of Europe, it was a calm session with few highlights.
Forex in Eurozone Headlines to Consider
The strength of the dollar should not be underestimated.
With significant expiries today, EUR/USD remains close to a critical support level, Whereas USDJPY plays with a crucial resistance area; 140 is the next target.
AUDUSD appears resigned to retest the lows from March and April.
DAX approaches record levels once more as stocks continue to rise in confidence.
De Guindos, ECB There is still room to increase rates more.
Bailey from BOE: I don’t see the balance sheet getting back to where it was before the financial meltdown.
European shares higher; S&P 500 futures up 0.2%; USD leads, GBP behind on the day
US 10-year rates increased by 1.9 bps to 3.600 percent.
Bitcoin increased by 0.1% to $27,365 while WTI crude fell by 0.2 percent to $72.67.
The European Markets are quiet today – Little Activity
As some of Europe is on vacation, it was a calm forex session with few stories. Additionally, there have been no noteworthy economic news at all.
The dollar, however, kept moving upward and tested significant levels in the EURUSD & USDJPY. Indices UP
The previous low is approaching crucial support at 1.0800, while significant option expirations are now preventing a further decline. The latter, however, is now trading up against its recent peak at 137.77-91 – As investors wait for a move to 140.00 area.
This occurs despite the fact that stocks continue to reflect a lot of confidence. With European indexes sharply rising. after yesterday’s advances on Wall Street. The mood is being helped by the small increase in US futures. Notably, the DAX is just a few millimeters away from new record tops hit at 16,285-90 the previous year.
As the slide this week goes on, the GBPUSD is expected lower 0.4% to 1.2440 as the dollar holds more steadily once again. While the Aussie is driven off by worse jobs reports released earlier, AUDUSD is dropped 0.3% at 0.6640.
Although it is unusual to observe the dollar rise at a time when stocks are also doing well. The markets are what they are right now.
Since the regional banking turmoil, investors has been quick to speculate in somewhat dovish Fed estimates. Nevertheless, it may now be that the Fed is on track to maintain rates high for longer due to rising inflation and the US economy’s resilience.
