US Dollar Strength Calms on Risk Appetite Reversal?
The US Dollar remains strong yet the march downards has halted today on both cable and EUR/USD. Yesterday most positions were heavily weighted net short, yet now it seems that the order book is more mixed as traders appreciate renewed risk appetite and the subsequent stock market gains.
The S&P 500 has rallied another 1% today with gains totaling 3.5% in the last 48hrs. The FTSE has aslo rallied another 2% bringing the total gain to 4% in the UK over the last two day period.
Today has seen a boost in the sales of existing homes as more Americans have signed contracts to buy previously owned homes in October. This has helped avert concern that the absence of support from the US government in this sector could be further de-stabilising the US housing market.
The fundamentals that are driving the 10% rise in home sales are record low borrowing costs and improved confidence in the US economy. The US stock market move was undoubtedly fuelled by this announcement.
Analysts now expect an improvement in the jobs situation in the US as consumer confidence picks up. Tomorrow sees a labour department report that is expected to show that 145,000 jobs have been addded to the markets.
Best Regards
Luke Zorab
Torfx Currency Dealer
“Any opinions expressed in this document are those of TorFX analysts. Any analysis and/or forecasts provided are aimed at helping clients understand market conditions and developing trends. Clients are wholly responsible for their own trading decisions.â€
Most Popular Content
- Gold Flying and Making New All Time Highs
- Gold Prices Slip Ahead of Anticipated Economic Data
- Oil Prices Surge From Lows Amid Mixed Global Signals
- U.S. Stock Indices: A Dance Between Optimism and Fear
- Gold Prices Dance with CPI Data and the Fed
- Oil Prices Surge Amid Record Demand and Supply Tightening
- Gold Steady As US Dollar Index Tries to Make Gains
- Some Respite for Crude Oil within Bear Trend
Currency Articles - May 22, 2019 15:21 - 0 Comments
The Pound is in Freefall – When Will It Stop?
More In Currency Articles
- GBP Gets Ready for an Unpredictable Day with Meaningful Vote 2
- British Pound Stays Strong Whilst The Dollar Remains Weak
Gold and Oil News - Mar 30, 2024 10:37 - 0 Comments
Gold Flying and Making New All Time Highs
More In Gold and Oil News
- Gold Prices Slip Ahead of Anticipated Economic Data
- Oil Prices Surge From Lows Amid Mixed Global Signals