US Dollar Falls on Improved Risk Appetite - Fed Announcement Could Impact FX Trade on Wednesday
The euro consolidated its recent gains against the US dollar on Tuesday, holding in a tight range of roughly 1.2950 - 1.3025. Resistance from the 100 SMA looms above at 1.3058, suggesting a further correction lower may be possible, but ultimately EUR/USD seems likely to continue gaining in light of the bearish turn lower in the DXY index. Meanwhile, the economic view of the Euro-zone remains fairly mixed, as this morning’s release of the German ZEW survey of investor sentiment reflected a divergence in opinion on current conditions and the economic outlook. Indeed, the index of sentiment on the current situation is forecasted to fall to a more than 5-year low of -89.4 from -86.2 while the outlook actually rose to -3.5 - the best reading since July 2007 - from -5.8. Overall, the data reflects the weak status of the Euro-zone’s largest economy, but also indicates that investors hold some hope that the European Central Bank’s policy efforts will help to encourage both economic and financial market recovery.
For the day's economic developments, visit Daily Fundamentals.
- European Fundamentals Improve, Encouraging Hopes for Recovery
- US Dollar Falls on Improved Risk Appetite - Fed Announcement Could Impact FX Trade on Wednesday
- US Dollar Takes Bearish Turn Lower - US Retail Sales Could Impact Risk Trends on Thursday
- US Fed - Divergence of Opinion
- US Dollar, Japanese Yen Under Pressure as Risk Appetite Lifts Carry Trades, Equities