Greece, French Politics and Dollar Moves

Share On Facebook
share on Linkedin
Print

With no first tier economic data out of Europe and North America, EURUSD direction will be dictated by political developments in the continent especially in France where the conservative presidential candidate Francois Fillon was pressured to quit as well as Marine Le Pen now leading the pack which will come under close scrutiny from investors. That along with coming elections in Italy, Netherlands & Germany and the IMF getting concerned with Greece’s bailout program will limit any upside in the single currency.

The Forbes (BoE) inspired rally in Cable has lost steam as the focus turns to the outcome of the voting of the article 50 bill with Brexit concerns to keep sterling bulls cautious. Another event worth watching we believe has to be the fall in China’s reserves below $3 trillion which may well lead the world’s second largest economy to cut its purchases of commodities and this may well provide a perfect excuse for investors to take profits on the commodity which has rallied strongly over recent months.

The US dollar is the big story this morning as still as it fails to hold on to any gains, with the US dollar index still failing at the higher level. This time the index failed to hold above the 20 day moving average at 100.48, an area it hadn’t traded since early January. Despite the weaker average earnings report last Friday and even without Trump’s unveiling of his economic policies, Fed speak is getting increasingly hawkish which will see the greenback bulls ready for the next charge which could well come sooner rather than later.

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

 
Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20211208 04:26:40