Investor Morale Improves, but Questions Over US Stimulus Remain

USD SLIDES, EQUITIES GAIN, BUT US STIMULUS TALKS STAY IN LIMBO

The dollar traded lower against all but one of the other G10 currencies on Wednesday and during the Asian morning Thursday. It lost the most versus NOK, SEK, CHF, and EUR in that order, while it underperformed the least against GBP. The greenback was found virtually unchanged against JPY.

EURO STOXX 50 — TECHNICAL OUTLOOK

Euro Stoxx 50 continues to slowly grind higher, while balancing above a short-term upside support line taken from the low of July 31st. The RSI and the MACD are still indicating a rising upside price momentum, which suggests that the index still has a chance to continue drifting higher. Also, as long as the price remains above that upside line, we will stay positive.

USD/CAD — TECHNICAL OUTLOOK

USD/CAD is currently trading near the 1.3228 and 1.3233 levels. Last time the pair was around that area was on August 5th. Overall, the rate continues to sit below its short-term downside resistance line drawn from the high of July 14th. The RSI and the MACD are indicating an increasing downside momentum. All this suggests that there might be more downside in the near-term, however we would prefer to wait for a drop below the 1.3228 hurdle first, before examining larger extensions to the downside.

AS FOR TODAY’S EVENTS

The calendar appears relatively light today, with the only releases worth mentioning being Germany’s final CPIs for July and the US initial jobless claims for last week. As it is always the case, Germany’s final CPIs are expected to confirm their preliminary estimates, while the US initial jobless claims are forecast to have slowed slightly, to 1.120mn from 1.186mn the week before.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
JFD

JFD

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