​Is the Euro Shaken?

The markets seem to be especially jittery today with the announcement of Banco Polpular Espanol SA taking over Santanders SA after Europe’s regulators feared of its failure. To compound issues, yesterday Germany announced a 7.4% slide of factory orders - of course this could also be considered a slight hiccup in an otherwise long-term trend of growth.

Trading on Tuesday ended with a decrease of the US dollar opposite other major currencies.
Due to the lack of macroeconomic data the markets are moving on limited information regarding the US labor market and speculation that the FOMC might not raise interest rates. Today’s economic calendar lacks significant releases that could affect currency pairs involving the dollar.

Trading on Tuesday saw the EUR/USD gain 0.20%, bringing the pair’s price up to 1.1276 at market closing.

GBP/USD moved nominally at 0.05% and opened today at 1.2913. It seems that the market is following the same pattern it did before the Brexit Referendum and enacting of Article 50, with a skeptical and uneasy holding of positions. Of course, historically prices dropped sharply with the outcome of the aforementioned events.

USD/JPY slipped slightly to 109.42 or -0.95%.

AUD/USD saw a slight increase yesterday and is expected by many to continue to grow today. Australian GDP exceeding expectations largely bolstered this rise.

Gold garnished a 1.12% raise and closed yesterday at 1293.72.

Oil prices continued its upward swing, Brent going up by 0.54% to 50.00 WTI increased by 1.11% and is pushing towards the resistance line at 48.41.

American and European stock markets finished in the red. The Dow Jones is trading at 21136.5 or -0.20%. NQ slipped slightly by 0.30% and closed at 5857.4. S&P also fell, to 0.17% overall closing at 2429.1.

The FTSE fell to 7522.2 by 0.21%. The CAC also slipped by 0.74% and to 5267.2. The DAX saw a bit of a drop its price finally closing at 12666.5.

This article comprises the personal view and opinion of the STO Investment Research Desk and at no time should be construed as Investment Advice

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