It ’s often a complicated question, and when it comes to markets, the “why” often takes a backseat to the “what” that is happening and “how” it should be traded. Nonetheless, it can be worthwhile to understand why a market relationship occurs, so that you can adjust more quickly than the competition when the relationship inevitably changes.
This was a monster session for the Euro gaining almost a penny. The move started early this morning when French GDP beat expectations and picked up further steam on hawkish comments from German Bundesbank President Weidmann. The yen took a bath today after crossing the .9600 mark on Friday for the first time since November 2016. The dollar was surely not culprit today as the yen was the only currency to truly lose ground against it.
Since the beginning of the month all battles between bulls and bears run in a fairly narrow area, which unfortunately doesn’t create good investment opportunities. In today's alert, we looked at the broader perspective of EUR/USD and the USD Index itself.
After the ECB’s dovish press conference the euro fell across the board, even against the Canadian dollar. The commodity currency has taken a beating of its own in recent weeks amid fears over protectionist U.S. policies, renewed weakness in oil prices and soft domestic data.
All things considered, the Euro reacted in a very quiet manner to today’s news. A strong read on private ADP Payrolls along with better than expected Nonfarm Productivity and Unit Labor Costs supported the dollar this morning.
All things considered, this was a very quiet session for the euro. The currency traded in a range of less than a penny in the face of a deadlocked Italian election, the formation of a coalition government in Germany and President Trump’s trade tariff talk.