U.S Dollar Shows Signs of Weakness, EUR/USD above 1.15
Wall Street Starts in Mixed Fashion
Wall Street turned in a tentative and mixed trading session on Monday as corporate earnings continue to be published. The U.S Dollar continues to garner attention as its slide against many major currencies. The Empire State Manufacturing Index was negative yesterday. A Housing Market Index report will be released later today, and tomorrow more housing sector data will be brought forth. It should be noted that the three major Indexes on Wall Street have all gained over the past month.
Stronger Yen Weaker Equities
Japanese traders returned to the marketplace today and promptly sold the Nikkei and Topix Indexes. The Yen has gotten stronger against the U.S Dollar and the 112.00 ratio is being tested. A stronger Japanese currency will not help the Japanese economy and this has likely created caution in its equity markets. Other Asian equity exchanges have also seen cautious selling this morning.
Euro Dollar above the 1.15 Mark
The FTSE 100 gained yesterday as other European Indexes lost ground. However, while the Pound battled resistance against the U.S Dollar, the Euro made strong gains and is trading near the significant mark of 1.15. The U.K will release important Consumer Price Index numbers today, and the inflation report could spark further speculation for the Pound. A German Economic Sentiment reading will also be released today.
Buyers shifts to Gold as U.S. Dollar Weakens
Gold has experienced a solid rise in value the past two trading sessions as a weaker U.S Dollar has helped demand. The precious metal is near 1236.00 dollars an ounce. Buyers appear to be gaining confidence in Gold, however its range the past two weeks highlights traders need to remain alert for sudden declines.
Yaron Mazor is a senior analyst at SuperTraderTV.
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This article was originally posted on FX Empire