The euro is on the front foot versus the dollar, as Wednesday’s trading session gets underway in Europe. The single currency is benefiting from a boost in risk appetite, as optimism takes over market sentiment. The complete re-opening of the Chinese economy is supporting hopes of a recovery in the pace of economic growth, with the wave of optimism lifting not just the euro but also other risk related currencies, like the Australian dollar. However, this upsurge in positivity may be tested later today, when the US Federal Reserve releases the minutes for its December meeting. Investors will scrutinize the notes carefully, searching for clues over what the central bank will do next. These minutes, alongside the release of employment data on Friday, may provide direction for the dollar, and therefore for the wider FX market, in the short-to-medium term.
Ricardo Evangelista – Senior Analyst, ActivTrades
European shares extended gains registered overnight in Asia on Wednesday, as the New Year’s rally looks set to continue this week. Risk appetite stays on the rise today, despite mixed macro data from the old continent, as investors cheered positive news from China after Beijing is said to be considering extended support measures towards property developers. That news has helped lift market sentiment while most traders are slowly switching their focus towards the US, with today’s release of the minutes of the last FOMC meeting, ahead of this week’s highly awaited NFP report. It seems a lot of investors remain optimistic regarding the global macro situation so far, and the bullish sentiment may even accelerate further this week if the next major macro release prove them right. The French CAC-40 index registered the best performance of the Eurozone so far, trading around the 6,700 pts mark, with the 6,820 pts / 6,845 pts as the next target for bull traders.
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.