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Daily market commentary: The euro is gaining ground on both the dollar and the pound



FOREX

The euro is on the front foot during early Thursday trading, gaining ground on both the dollar and the pound. The single currency’s strength comes on the back of positive developments about the availability of vaccines on the continent during the second quarter, where a substantial increase in supplies is expected. One of the reasons, perhaps the greatest one, for the euro’s weakness during the first three months of the year was a suboptimal management of the vaccination program, which compared unfavourably with the smoother UK and US’s roll-outs. However, that looks like it is about to change. This scenario provides an improved outlook for the euro and further strengthening may occur, especially versus the pound, as roles seem to have switched with doubts emerging over the future availability of vaccine supplies in the UK.

Ricardo Evangelista – Senior Analyst, ActivTrades

daily market analysis

GOLD

The support zone of $1,675 worked perfectly for gold, generating a solid rebound. As well as this technical support, gold’s rebound was also helped by a slight decline in US yields, while some short traders probably decided to take profit, closing or reducing their bearish bets on gold. So far, the main trend has not changed and continues to point lower, but we have once again seen that when the price falls below $1,700 buyers react powerfully. A climb above $1,720 would be positive for bullion price, while only a clear recovery above $1,750 would turn around the current bearish outlook.

Carlo Alberto De Casa – Chief analyst, ActivTrades 


Disclaimer: opinions are personal to the authors and do not reflect the opinions of LeapRate. This is not a trading advice.

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Daily market commentary: The euro is gaining ground on both the dollar and the pound

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