Investors shunned the negativity and focused on the positives today sending equities higher and driving low yielders, the dollar and safe havens lower as the sentiment takes a breather.
We can see investors recovering some of the losses though the volatility remains extensively high as investors set their focus on the US retail sales which are expected with a rise though at a slower pace, confirming the ongoing recovery in the economy.
Asian stocks moved higher and Europe trailed and the US futures signal a green US opening. The dollar is trending lower as the dollar index hovers around 74.76 after recording the high of 74.99 and the lows of 74.73.
The euro continued the rise as the rise in industrial production, though below expectations, was still positive for investors. The common currency enjoys the strong merits versus the dollar especially after the ECB tightened while the feds monetary tightening lags further. The EURUSD is attempting to stabilize above 1.4500 recording the high of 1.4519 and the low of 1.4453.
Sterling on the other end traded with high volatility and gained on the back of the weak dollar as the data from UK labor sector were mixed! The rise in jobless benefits was seen as a result of the change in laws which helped investors focus on the drop in unemployment to 7.8%. Sterling is hovering around 1.6292 around its highs recorded at 1.6300 and well off lows at 1.6236.
With the recover of investors' sentiment, the focus shifted from the yen haven demand which weakened it against the dollar. The USDJPY moved higher to stabilize above 83.50 areas and currently around 84.05 recording the high of 84.26.