The dollar is keeping slightly firmer on the day after yesterday's drop, as there still seems to be a push and pull feel before the weekend comes alon
The dollar is keeping slightly firmer on the day after yesterday’s drop, as there still seems to be a push and pull feel before the weekend comes along. The mood in equities is better after a softer showing yesterday, though US stocks at least came off its early lows to recover some ground despite ending in the red.
That said, it looks very much like the market is just taking a bit of a breather for the most part.
The dollar has been on a tear since April trading, posting what has been a solid stretch of gains. Against major currencies like the euro, pound, aussie, and kiwi, it has been rather one-way traffic so perhaps a retracement is overdue. That is not to forget the surge in USD/JPY from 115 in March to 131 at the start of this month.
As the saying goes, nothing ever moves in a straight line in the market. So, that might be cause for a pause in the dollar momentum for now.
Elsewhere, stocks are hoping to recover more poise as the week winds down. S&P 500 futures are up 0.8% but barring a miracle rally today, the index will suffer its seventh straight weekly drop. The storm clouds are still hanging over markets but that is quite some run of losses, so we may be due a technical bounce from the overselling.
For today, the tug of war in the market mood will continue to play out and that might not lead to much trending action before the end of the week.
0600 GMT – UK April retail sales data
0600 GMT – Germany April PPI figures
That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
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