The calendar was full today with all sort of major fundamentals coming from major economies. Today we saw frustrated markets as news came equally balanced pushing market participants to trade in a volatile matter.
The Euro Zone is being hit by a record high inflation of 3.2% official data showed today increasing a dilemma for the European Central Bank as the euro and oil prices also reached peaks. Meanwhile unemployment in the euro zone is falling while economic confidence is dipping according to official EU data. This added pressure on the European currency pushing it slightly down against greenback which in turn dragged the pair with it to record till this hour a low of 1.5159 after recording a high of 1.5239 earlier in the day.
Meanwhile, the pound had been trading in a volatile matter against the dollar as the market is pricing a 50-50 chance of a cut in rates by June. Major fundamentals were flying in affecting all aspects of the currency market. Against the euro, the pound fell as sagging consumer confidence and falling housing prices enhanced speculations that the BOE will soon lower interest rates. The pound is frustratingly soft as the markets are moving according to the players' attention to bad news. As for this hour, GBP/USD pair, it is heading towards the upside to fetch a high of 1.9921 and a low of 1.9784.
The dollar continues to fall against the yen on signs that the Feds are planning to cut in rates to revive the slowing economy. The fall of the dollar pushed the pair to the downside to record at this hour a low of 103.82 after recording a high of 105.01.
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