Dollar recovers, but euro holds ground

The dollar is just about regaining the upper hand and certainly in the case of the Aussie, AUDUSD has retraced all the way back from above 0.7900 just a week ago to 0.7630 at the time of writing, not all that far off testing a near six year low. Downward pressure on the Aussie is coming from growing concerns about China and commodity prices that remain depressed. This hasn’t put off risk appetite in many Asian equities which continue to test and push to new seven year highs, but iron ore and crude are languishing indicating that investors see a tough run for China over the longer term, whereas short term stimulus measures could keep indices supported.

The dollar recovery has not played out so much against the euro with EURUSD at 1.0780, still some way off its lows, as recent data continues to surprise with yesterday showing decent German inflation figures and some surprisingly strong Italian confidence numbers all allowing the single currency to hold its ground. Already this morning German retail sales have come in slightly better than expected month-on-month and even French consumer spending has managed a 0.1% rise as opposed to the expected 0.0%. Eurozone inflation data this morning will be closely watched and then later in the day we see US consumer confidence expected to post a figure of 96.0, just slightly down on the previous month’s number of 96.4. Overnight keep an eye out for the Japanese Tankan data and Chinese non-manufacturing PMI as we commence the new month and quarter.

Share: Analysis feed

FxPro UK Limited is authorised and regulated by the Financial Services Authority, registration number 509956. CFDs are leveraged products that incur a high level of risk and it is possible to lose all your capital invested. Please ensure that you understand the risks involved and seek independent advice if necessary.

Disclaimer: This material is considered a marketing communication and does not contain, and should not be construed as containing, investment advice or an investment recommendation or, an offer of or solicitation for any transactions in financial instruments. Past performance is not a guarantee of or prediction of future performance. FxPro does not take into account your personal investment objectives or financial situation. FxPro makes no representation and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied by any employee of FxPro, a third party or otherwise. This material has not been prepared in accordance with legal requirements promoting the independence of investment research and it is not subject to any prohibition on dealing ahead of the dissemination of investment research. All expressions of opinion are subject to change without notice. Any opinions made may be personal to the author and may not reflect the opinions of FxPro. This communication must not be reproduced or further distributed without the prior permission of FxPro. Risk Warning: CFDs, which are leveraged products, incur a high level of risk and can result in the loss of all your invested capital. Therefore, CFDs may not be suitable for all investors. You should not risk more than you are prepared to lose. Before deciding to trade, please ensure you understand the risks involved and take into account your level of experience. Seek independent advice if necessary. FxPro Financial Services Ltd is authorised and regulated by the CySEC (licence no. 078/07) and FxPro UK Limited is authorised and regulated by the Financial Services Authority, Number 509956.