The euro is gaining ground on the dollar during the early part of Tuesday’s session, trading above $1.22 for the second consecutive day. The dynamic between the pair has been dictated mainly by dollar weakness over the last few weeks and this keeps growing as investors increasingly take seriously the Fed’s willingness to maintain its current monetary and asset purchase policies. Later today we’ll have eurozone inflation data and this could tip the scales further in favour of the single currency should it show a strong number.
European markets climbed significantly higher on Tuesday, carrying on the trend from another strong trading session in Asia overnight. Investors seem determined to send stock prices higher on the first day of the month amid a fresh boost to market sentiment provided by solid Chinese macro data as well as optimism about the prospect of restrictions being lifted in Europe this summer. However, this could also be the calm before the storm ahead of this week’s US job report, due Friday, with traders keen to get more clarity on the pace of the recovery and the Fed’s possible withdrawal of monetary support. Meanwhile, the technical situation over EU benchmarks is reassuring and clearly bullish as the German DAX-30 Index from Frankfurt is trading higher, above 15,500pts, following the validation of its bullish flag. The next targets are 15,715pts and 15,940pts.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.
