It’s been a wild week in markets so far with Trump drama continuing to cause a stir and much volatility. Wall Street had one of those days where you wouldn’t be surprised if markets ended up 2% down or 2% up or even unchanged. It was just that kind of day. In FX though, the dollar is feeling the pinch despite the more sensitive risk mood and jumpy markets.
The changes so far today are minimal but EUR/USD finally got its breakout above 1.0500 for one. Meanwhile, GBP/USD is now contesting its own 200-day moving average at 1.2785 alongside its December high of 1.2810. So, that’s also one to watch out for in the second half of this week.
Despite Trump’s tariffs, USD/CAD erased the gains from Monday in a rejection of 1.4500 again. The pair is slightly higher today but it’s a tricky situation as we could see tariffs get called back later today or this week. So, it’s best to stay fluid on this one.
Looking to equities, the S&P 500 ended lower by 1.2% but tech shares managed to salvage something at least. The Nasdaq ended down by just 0.4% after being down by over 2% at one point yesterday. US futures are more buoyed today with S&P 500 futures now up 0.6%. Is this where dip buyers make their stand?
In European trading today, there will be quite a number of data releases to work through. But none of which will have much of any real impact as the main focus continues to stay on US trading for the most part. After all, we need Trump to be awake for the volatility to really kick in. So, it will be a bit of a breather here in the session ahead at least.
0730 GMT – Switzerland February CPI figures0815 GMT – Spain February services, composite PMI0845 GMT – Italy February services, composite PMI0850 GMT – France February final services, composite PMI0855 GMT – Germany February final services, composite PMI0900 GMT – Eurozone February final services, composite PMI0900 GMT – Italy Q4 final GDP figures0930 GMT – UK February final services, composite PMI1000 GMT – Eurozone January PPI figures1200 GMT – US MBA mortgage applications w.e. 28 February
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.
This article was written by Justin Low at www.forexlive.com.
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