The market continues to fluctuate heavily in the aftermath of the US developments from the FOMC to growth figures reported yesterday.
We can see the sentiment jittery and starting to shift with crude trending lower on signs of slowing recovery, while currencies to the opposite turn higher against the dollar on signs of recovery and monetary tightening!
The dollar remained weak ahead of the income report which is expected to confirm the slowing pace of recovery in the first quarter. After growth missed estimates yesterday with 1.8% today spending is expected at half the previous pace at 2.0% further arousing skepticism over the real course of the recovery.
The dollar index that gauges greenback's performance versus its six major trading partners remained around its weakest in three years after the Feds pledge to keep rates low. The dollar index is hovering around 72.94 recording the high of 73.18 and the low of 72.86.
As for the euro, the common currency continued to move higher after the flash eurostat estimate confirmed rising inflation at a faster than expected pace with 2.8% from 2.6% supporting the bets for ECB tightening and offsetting the pressure of the drop in confidence. The euro is hovering around 1.4866 recording the high of 1.4877 and the low of 1.4802.
As for sterling, UK markets are now celebrating the Royal Wedding and investors are out of the market yet the royal pound still rose versus the dollar to the high of 1.6689 and fell from the strong resistance and negative momentum towards 1.6653 right now but still trading bullishly and above early lows of 1.6621.
The dollar's weakness is still prompting records across the board and today's star was swissy. The Swiss franc rose to a record on prevailing dollar weakness, uncertainty haven demand, and hawkish comments from the SNB. The USD/CHF continued the trip south recording the low record of 0.8650 as swissy continues to be stronger than the dollar.