The dollar is starting the week as it finished on Friday, losing ground to other major currencies, with the Dollar Index dropping to lows not seen since the beginning of March. The weakness of the American currency results from the gathering pace of the global economic recovery, with data published last week revealing that Europe and elsewhere are closing the gap on the United States, leading to the strengthening of the respective currencies. The improved global outlook also affects the general sentiment amongst investors, with risk appetite growing and leading to the closing of safe-haven dollar trades.
European shares followed the global trend by opening slightly higher at the start of another busy week on the macro front. While corporate results are still likely to be the main focus for investors, especially with earnings from tech giants Apple and Facebook as well as Tesla looming this week, traders will also keep an eye on the Fed’s next move. Even if no significant change in monetary policy is expected on Wednesday, investors will scrutinize and analyse the wording chosen by Jerome Powell during the press conference to gain further hints on its monetary outlook. The best European performance comes from Madrid this morning as the IBEX-35 Index is challenging its immediate resistance at 8,680pts, with 8,750pts the next upward target.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.
