Inflation Fears Weigh More on Equities

RISING YIELDS ADD MORE PRESSURE TO GLOBAL STOCK MARKETS

The US dollar turned south against all the other G10 currencies on Thursday and during the Asian session Friday. It lost the most ground versus GBP, NZD and NOK, while it underperformed the least versus CAD, JPY, and CHF.

EURO STOXX 50 — TECHNICAL OUTLOOK

After hitting the area near the 3742 barrier on Tuesday, Euro Stoxx 50 moved lower and is now resting on one of its key support levels, at 3682, marked by the high of February 8th. At the same time, the price continues to balance above a short-term tentative upside support line taken from the low February 4th. As long as the index remains above both of those obstacles, there is a good chance we could see another push higher. However, to get a bit more comfortable with that idea, a move above the 3710 barrier would be needed.

EUR/USD — TECHNICAL OUTLOOK

On Wednesday, EUR/USD reversed higher and is now seen trading above a short-term tentative upside support line drawn from the low of the February 5th. At the time of writing, the pair is trading near all of its EMAs on our 4-hour chart. Although there is a chance for the rate to push higher, a break above the 1.2104 hurdle could strengthen that scenario. For now, we will take a cautiously-bullish approach.

AS FOR THE REST OF TODAY’S EVENTS

During the early European morning, the UK retail sales for January came out, with both the headline and core retail sales falling by more than anticipated. Yet the pound remained on an upside trajectory amid Britain’s aggressive vaccination program.

JFD

JFD is a leading Group of Companies offering financial and investment services and activities.

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JFD

JFD

JFD is a leading Group of Companies offering financial and investment services and activities.