The euro is slightly up against the US dollar during the early part of Thursday’s trading session, as the greenback recedes from the multi-month highs reached earlier in the week. The US currency had been supported by pandemic-related fears during the first part of the week, due to its safe-haven status. Such fears have now dissipated, as strong earnings improved the mood of investors and boosted risk appetite with notable gains in global stocks. Meanwhile, it’s interesting to see the euro, ahead of today’s ECB meeting, recovering from the lows reached on Wednesday; the general consensus is that the changes to their policy strategy, offering more flexibility towards inflation, will eventually become a headwind for the single currency with rates likely to remain low for longer.
Gold is edging lower during Thursday morning, following a rise in risk appetite in global markets. Investor sentiment rose due to the galvanising effect of strong earnings that boosted global stocks and outweighed lingering uncertainty caused by the advance of the Delta variant. Another factor that may end up weighing down on gold is the bearish outlook for the euro. Today’s ECB meeting is expected to rectify the central bank’s strategic review, which will make it more likely for rates to remain lower for longer in the eurozone. This new approach is likely to represent a headwind for the single currency and offer support to the US dollar; a scenario that could potentially drive further losses for the precious metal.
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.
