Euro tacks on as political risk is eyed

Euro tacks on as political risk is eyed

On Monday, the common currency managed to grow because a dive in American Treasury revenues brought down the evergreen buck, although trading turned to be relatively quiet ahead of a number of speeches by major bankers as well as key political developments in Italy and Germany.

With the evergreen buck’s rebound since it reached a three year-minimum on February 16, the common currency gained 0.3% hitting $1.2328.

The common currency came 2 cents off its recent maximum of more than $1.25. This year the currency has managed to add in the face of dollar weakness and market experts told traders were cautious as for taking big positions because of political risks.

On Sunday, Italians are going to vote in a national election, while in Germany, the EU’s number one economy, the leading political parties are going to decide on a coalition deal, which could potentially secure Angela Merkel a fourth term, as  the country’s chancellor.  

Market experts pointed to weekly futures reports, which showed net long positions in the common currency had dived for the third week. On Monday, ECB Governor Mario Draghi's appearance in the European Parliament as well as euro zone inflation data to be published this week also contribute to a nervous outlook for the common currency.

The dollar index, tracking the US currency versus a group of six key counterparts, dived 0.2% reaching 89.685. The previous week it acquired approximately 0.9% and drifted away from a three-year minimum of 88.25 demonstrated on February 16.

The major US currency headed south 0.1% against the Japanese yen hitting 106.65 and paring some of its earlier losses in Asia trade.

While equity markets started the trading week on a firm footing and pointed to sturdy risk appetite, futures data hinted that market participants were reducing their risk exposures.

 

Similar

The UK Speeds Up Tightening
The UK Speeds Up Tightening

The Bank of England (BoE) will share its Official Bank Rate and make a statement on monetary policy on August 4, 14:00 GMT+3.

Again? Will the Fed Increase the Rate?
Again? Will the Fed Increase the Rate?

The Federal Open Market Committee (FOMC) will update the Federal Funds Rate and make a statement about future monetary policy on July 27 at 21:00 MT.

Latest news

USD Moves Weird Ahead of CPI
USD Moves Weird Ahead of CPI

The United States will publish the Inflation Rate and Core Inflation Rate, also known as US CPI and Core CPI, on August 10 at 15:30 GMT+3.

The NFP Release: One More Punch for USD?
The NFP Release: One More Punch for USD?

The United States Bureau of Labor Statistics will release monthly average hourly earnings, non-farm employment change (NFP), and unemployment rate on August 5, 15:30 GMT+3.

Deposit with your local payment systems

Be on top of your game

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera