Is the EUR being complacent?
March 7, 2018
Europe Market Movements
For the time being, the EUR is the winner in the (for the time being verbal) trade war between the European Union and the United States. The single currency has been making gains for 4 days in a row at the expense of the greenback. Is the shock for the euro still to come? Some traders feel that this is definitely the case. On the events front, the EU’s Gross Domestic Product will be released this morning. EUR traders, don’t miss this one.
US Market Movements
For the time being the US has been the main loser in the trade war rhetoric. US stocks are set to open sharply lower after the announced resignation of Gary Cohn, head of the President’s National Economic Council, over disagreements about the steel and aluminum tariffs policy. The Dow Jones Industrial Average fell by 1.32%, the S&P 500 index futures by 1.03% and the Nasdaq 100 Futures by 0.96%. The USD has also been losing value against major currencies as has the CAD against the USD. Canada stands to be very much affected by import tariffs. Don’t miss out on the Canadian interest rate decision today.
Asia/Oceania Market Movements
The JPY has risen against the USD in the wake of the trade war ‘war of words’ but the AUD has been taking the news in poor spirits. The pair has slumped from 0.7820 yesterday at 10:30 PM GMT to 0.7801 this morning at 7:36 GMT. The AUD was further hit by news that the US might impose tariffs on Chinese items such as shoes and electronics.
A US District Judge has ruled that virtual currencies such as Bitcoin can be regulated by the US Commodity Futures Trading Commission. Could this be a step in the regulation of cryptocurrencies? Loss by the greenback is a gain by the much coveted yellow metal – gold. Gold futures have risen by more than 1% on the back of the USD decline. Strategists note that when the dollar declines, the price of gold rises.
|10:00 GMT||EUR: Gross Domestic Product|
|15:00 GMT||CAD: BOC Rate Statement & Interest Rate Decision|
|15:30 GMT||USD: EIA Crude Oil Stocks|