The euro is on its third consecutive session of gains against the dollar during early Thursday trading. The greenback has been losing traction amongst investors, whose concerns about the impact of rising bond yields appear to have receded, following two successful auctions this week and the weaker than expected US inflation figures published on Wednesday. Meanwhile, there is a healthy demand for euros in the currency markets ahead of today’s ECB meeting. One suspects the ECB’s attention will be more focused on the bond market this time around rather than on the strength of the single currency, which was the primary concern the last time they met.
The dollar’s decline following the approval of the $1.9 trillion stimulus package and weaker than expected inflation has lifted the gold price and removed some of the recent fears about bullion. The price reaction was remarkable with gold jumping above $1,730 and moving the short-term momentum back into positive territory, a move that has been confirmed by the last six 4-hour charts being in the green. This bullish wave will face its first significant resistance when the price approaches the key level of $1,760, which having previously been an important support zone in the last few months, has now become a resistance level after the recent price decline.
Carlo Alberto De Casa – Chief analyst, ActivTrades
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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.
