The dollar remains the centre of attention in the foreign exchange market, continuing to lose ground to other major currencies in early Thursday trading. Throughout March the greenback had strengthened due to a sell-off in the bond market fuelled by inflation related fears. However, since the beginning of April, the Federal Reserve’s commitment to its current accommodative policies started to resonate with investors, who until recently believed it wouldn’t be long until the central bank deviated from its pledge to keep interest rates low. With the Fed not budging, seeing rising prices as a short-term phenomenon, it is possible that the dollar will remain under pressure.
European markets traded in green territory from Stockholm to Madrid on Thursday as investors’ optimism is on the rise following the latest batch of corporate results. Despite disappointing trading in Coinbase shares yesterday, with the stock price dropping shortly after the IPO, this was more than offset by strong earnings from the banking sector. Even if some investors remain alert to any potential obstacle to the current bullish trend, continuing Government spending, a dovish monetary environment and a better-than-expected earnings season are still providing solid support to market sentiment. Traders will remain focused on data today with the US retail sales release in the afternoon as well as another long batch of corporate results with reports from BlackRock, Citi Group, Bank of America, L’Oréal and Dior. Meanwhile, almost all EU benchmarks are in green territory with Swiss shares the best performer with the SMI-20 Index now trading well above 11,050pts.
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.