23 Mar 2015
What's next? USD continues with its correction; Euro advances
FXStreet (Tokyo) - The Dollar continues trading on the defensive as investors are selling the USD after previous weeks of gains. On the other hand, the Euro is advancing against its major competitors and the EUR/USD is testing the 1.0950.
Today's Troika: Tsipras, Merkel and Draghi
Today's headlines supported the Euro advance. Mario Draghi affirmed that the growth in the Eurozone is gaining momentum. As FXstreet analyst reported previously, "the momentum is mainly driven by a fall in oil prices, firming of external demand, easy financing conditions due to loose monetary policies, and due to depreciation of the Euro. Draghi said the upbeat economic view is clear from the ECB projections, which were visibly revised upwards."
In addition, the Tsipras/Merkel meeting was a non-event for the currency market, or at least no more bad news, which is good for the Euro quotation. Both agreed that reforms in Greece should be completed as the country needs to fight against tax evasion and corruption. It seems the meeting was friendly.
EUR/USD is testing the 1.0950 area, highest since the Fed's patient-day; the EUR/JPY broke above the 131.00 level and now it's testing the 131.20. Oil and gold advance for the fourth day in a row; while the US stocks are mixed as the Dow Jones and S&P 500 are posting gains but the Nasdaq is negative in the day.
Major headlines in the day:
- Growth is gaining momentum - ECB's Draghi
- Tsipras/Merkel: No deadlines, no reaction in currencies; EURUSD remains at highs
What's next on Monday:
Busy day for investors that should pay attention on Tuesday to the Chinese CB Leading Economic Index, the series of service and manufacturing flash PMI and the CPI in UK first, and then US.
Today's Troika: Tsipras, Merkel and Draghi
Today's headlines supported the Euro advance. Mario Draghi affirmed that the growth in the Eurozone is gaining momentum. As FXstreet analyst reported previously, "the momentum is mainly driven by a fall in oil prices, firming of external demand, easy financing conditions due to loose monetary policies, and due to depreciation of the Euro. Draghi said the upbeat economic view is clear from the ECB projections, which were visibly revised upwards."
In addition, the Tsipras/Merkel meeting was a non-event for the currency market, or at least no more bad news, which is good for the Euro quotation. Both agreed that reforms in Greece should be completed as the country needs to fight against tax evasion and corruption. It seems the meeting was friendly.
EUR/USD is testing the 1.0950 area, highest since the Fed's patient-day; the EUR/JPY broke above the 131.00 level and now it's testing the 131.20. Oil and gold advance for the fourth day in a row; while the US stocks are mixed as the Dow Jones and S&P 500 are posting gains but the Nasdaq is negative in the day.
Major headlines in the day:
- Growth is gaining momentum - ECB's Draghi
- Tsipras/Merkel: No deadlines, no reaction in currencies; EURUSD remains at highs
What's next on Monday:
Busy day for investors that should pay attention on Tuesday to the Chinese CB Leading Economic Index, the series of service and manufacturing flash PMI and the CPI in UK first, and then US.