The USD lost ground to the EUR on Wednesday as equity markets bounced higher and traders took advantage. There was no major economic data released from the U.S. yesterday and with a certain amount of stability being shown it appears market participants were willing to take positions that allowed for a higher degree of risk. Today weekly Unemployment Claims will be published and a number of 461K is estimated. The anticipated jobless number today is expected to be slightly better than last week’s result. While there has not been much in the way of data recently, the few numbers that have been published have proven disappointing. Tomorrow will be another quiet day of releases, thus today’s Unemployment Claims may prove noteworthy if any surprises come about.
The USD has been taken to the weaker side of its range against the EUR in trading and it has not shown the ability to push back. The question is how long this type of momentum will continue as the market tries to decipher ‘fair value’ with so many long term economic concerns hovering over the global economy. The broad markets turned hectic yesterday and the S&P index had its best performance in nearly a month. Commodity prices also bounced higher after several tough days of downward pressure. Crude Oil Inventories will be released today, but traders are unlikely to be moved too much by its outcome while relying more on the power of its current ranges. The USD has shown that it can be pushed lower against the EUR & GBP and traders who have gone short the greenback have found plenty of opportunity within the short term. If risk appetite is strong enough to stay around the next couple of days, the USD could be tested further.
Written by bforex.com
