Daily market commentary: The US dollar records modest gains against other major currencies

Forex

The US dollar hit a new weekly maximum before easing down slightly during early Wednesday trading. Demand for the American currency increased after two Fed officials, known for their usually dovish stance, came out in public and affirmed that the central bank remains committed to controlling inflation, and will continue to hike rates until achieving its objective. These comments helped to break the greenback’s losing streak and saw it claim back a significant part of the losses recorded during the previous week.

Ricardo Evangelista – Senior Analyst, ActivTrades

Daily Market Commentary

European Shares

Most European shares continued to climb on Friday, following the Asian trend, while US futures also point to a firmer opening ahead of the last trading session of the week. Corporate earnings, especially from the tech sector, are continuing to supporting market sentiment and appetite for riskier assets in August, as investors seize the occasion brought by cheaper stock prices following this year’s sell-off to increase their exposure to these markets. Even if this wind of relief continues to blow so far, the current rally on stocks shouldn’t lead stock prices to new record highs. The overall market environment, still under the threat of higher borrowing costs, economic slowdown and rising geopolitical tensions, remains bearish for stocks. Investor attention is likely to remain on macro data today with the US NFP data for July where a decrease from 372K to 250K job creation is widely expected.

 

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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