We had a mixed close for yesterday’s US session and gains were marginal, but worth noting Nasdaq’s 10 day gains. However the ability of Trump’s Government to push forward further policy changes keeps being questioned especially now that it has been reported that Special Counsel Robert Mueller is looking into the business dealing Trump and other associates.
The USD continues to have that sinking feeling as we mark lows last seen in August 2016 on the US Dollar index (DXY), and index measuring the strength of the USD against a basket of other currencies.
Meanwhile the euro sought to capitalise on the USD weakness and is now trading prices we had in August 2015, quasi 2-year highs. EURUSD marked highs of 1.1656 throughout Thursday’s session and is currently at 1.1628.
We may see another push towards 1.17 levels, but by that time the currency pair will probably be ripe for a correction that may see it resume 1.1521 levels, warns our TraderTip’s daily scenario – such correction would be aborted if the preceding rise goes above 1.1766.
Comments from ECB president Draghi yesterday, as he addressed the customary press conference just after the ECB’s policy meeting, were interpreted as hawkish. Mr Draghi said that no dates had been set for discussing any changes to the current ultra-easy policy but that they would probably re-consider in Autumn. His words effectively leave the door open for both extra stimulus and also balance sheet normalisation.
The Aussie suffers some considerable losses this morning, after the RBA’s deputy governor cooled down expectations that interest rates could rise.
