The euro hit a 3-month low versus the dollar during yesterday’s trading session, following the publication of disappointing German business sentiment and industrial data, raising some concerns over the recovery of the eurozone’s largest economy. The euro was also penalised by a drop in risk appetite triggered by a sudden drop in oil prices, following a dispute amongst OPEC+ member countries that some fear may end with producers breaking ranks. Meanwhile, all eyes will be on the publication later today of the latest FOMC meeting minutes, which could trigger more dollar strength should further details emerge pointing at the Fed’s intention to bring forward the timing of the tapering.
Gold edged higher during early Wednesday trading, with the gains attributable to some dollar weakness in the runup to the publication of the latest FOMC minutes, as well as a drop in risk appetite. The sudden halt in the rise of oil prices on Tuesday resulting from a growing rift between Saudi Arabia and the UAE, and the publication of disappointing German economic data, generated some risk aversion amongst investors, which, alongside dollar weakness, offered support to gold. The publication of the latest FOMC minutes later today is likely to influence the performance of the precious metal, as its recent price action has to a large extent moved in correlation with the greenback.
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.
