Dollar Positive; Euro Negative
The markets are following a pretty simple formula at the moment; Euro = negative, US Dollar = positive. Where does the Pound sit in all this? It’s actually pretty irrelevant at the moment.
Land of the Free
Yesterday was another good day for the US Dollar as consumer confidence came in much higher than expected and durable goods came in at a record high. There were also reports that the Philadelphia, Kansas and Dallas Federal Reserve Banks had requested a 0.25% rate hike ahead of July’s Fed meeting. All is looking good at the moment in “The Land of the Free”.
Over in Europe, things aren’t looking so rosy and the Euro is struggling although this isn’t necessarily a bad thing for Mario Draghi and the rest of his policy makers. Since Draghi raised expectations of further monetary stimulus, the Euro has been seen to be weakening. Allied with the ongoing situation in Russia/Ukraine and further disappointing German figures, it is no surprise to see the Euro going in the direction it is.
Today we have already seen German Consumer Confidence Figures come out a little worse than expected and we wait for Italian Consumer Confidence, US mortgage applications and Japanese foreign investment figures.