Menu

Daily market commentary: The euro is losing ground to the dollar



FOREX

The euro is losing ground to the dollar during early Wednesday trading, as the markets price-in the increasingly divergent economic prospects for the US and Europe. The success of the American vaccination program is starting to show a path back to normality, with a $1.9 trillion stimulus package promising an explosion in economic activity that is likely to drive up inflation. Meanwhile, in Europe the picture is fuzzier due to a suboptimal vaccine rollout, that has recently entered a new chapter with several EU countries suspending the use of the AstraZeneca vaccine. Apparently, these decisions were taken without any substantial scientific basis, and could further delay the vaccination of the European population, weighing down on the single currency’s prospects.

Ricardo Evangelista – Senior Analyst, ActivTrades

daily market analysis

GOLD

Gold remains in “wait and see” mode ahead of the Fed’s latest economic projections. Bullion is still toying with the key level of $1,730 with low volatility, while investors are clearly waiting for the outcome of the Federal Open Market Committee. The central topic is not about short-term decisions but the medium- and long-term forecasts. From a technical point of view, a clear climb above $1,740 would open space for further gains, while a decline below the $1,700 mark will show weakness.

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.

Related News

Daily market commentary: The euro is losing ground to the dollar

0
Send this to a friend