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Daily market commentary: The greenback has been on a rollercoaster ride



FOREX

The US dollar is trading flat but holding on to the previous session’s gains, following the release of producer prices data which surprised to the upside. The greenback has been on a rollercoaster ride so far this week. It dropped on Wednesday, after the release of consumer prices data, which read at a mere 0.3% month-on-month in July and disappointed dollar bulls but then recovered most of the lost ground on Thursday, after producer prices data showed the steepest annual increase in over a decade. Inflation matters because, alongside the state of the labour market, it weighs heavily on the Federal Reserve’s decision on whether to bring forward the beginning of the tapering to as early as September. Investors have been analysing employment and inflation data carefully and their expectations on the Fed’s next moves have been the main factor behind the performance of the dollar over the last few months.

Ricardo Evangelista – Senior analyst, ActivTrades

daily market analysis

EUROPEAN SHARES 

European shares are extending yesterday’s gains amid a rising appetite for riskier assets ahead of the weekend. Even though the Delta variant keeps weighing on market sentiment in many regions like Asia, investors are optimistic about countries with more aggressive vaccination programs in place, such as Europe and the US. Apart from Madrid, all other European benchmarks are in green territory. Frankfurt and Paris are even hovering towards all-time highs, with no sign of weakness so far. The CAC-40, boosted by the Retailers sector, is flirting with the 6,900.0pts mark, the last significant level before the strong psychological 7,000.0pts zone.

Pierre Veyret– Technical 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 greenback has been on a rollercoaster ride

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