Euro Forex Market Maintains Positive Momentum
- Euro Holds Well Above Parity
- Geopolitical Concerns Involving Russia
- Stocks Dip Ahead of Retail Sales
The Euro forex market retained its position well above parity in trading with the US Dollar through the middle of the week. The currency has managed to stay above this key level since breaking through last week. There was some selling as geopolitical concern grows over an incident in Poland which they say may be the result of a Russian missile launch. At the same time on Wall Street, stock futures dipped slightly ahead of October retail sales figures in the US.
Euro Remains Strong in Face of Challenges
It has taken some time for the Euro to break back above parity against the Dollar. The latter saw a very strong run-up over the last number of months. This restricted other rival major currencies in any potential gains regardless of economic factors. Since breaking back above the level last week, the common currency has managed to continue its positive momentum. This has been slowed somewhat by the latest developments in Europe particularly surrounding Russia and the geopolitical tensions in the region with Poland.
Despite these issues and a move toward the US Dollar early when the news was released, the Euro has still maintained its position and at the time of writing was trading close to 1.04 which would be an intraday high. Those forex trading the Euro are also keeping an eye on more positive economic data from that bloc that could lead to policy divergence between the ECB and Fed.
No Conclusion Draw on Poland Missile Incident
Reports are emerging of an explosion near the Polish border with Ukraine by what is believed to be a Russian-made missile. Despite this, leaders in Poland alongside the US have moved to downplay the incident. President Andrzej Duda of Poland has said they do not have conclusive information yet on who fired the missile. President Biden has also commented that it is unlikely the missile was fired by Russia based on the trajectory, but that they will work to find out what has happened.
Given the existing tension in the region and the fact that Russia has already been operating in the area close to the Ukraine-Poland border, it is a precarious time for Poland and the other Nato countries with Poland being a member of this alliance.
Wall Street Dips Ahead of Retail Figures
Stocks fell in overnight trading as forex stock and forex brokers and traders alike pondered the upcoming retail sales figures for October. These are expected to give another key insight into consumer behavior and the inflationary environment that has proven so pivotal.
Dow Jones futures fell by 0.2% while those tied to both the S&P500 and Nasdaq dropped by similar amounts. Some analysts expect a pullback is due after large gains in recent days on the back of lighter than expected inflation reporting. All three major American indices finished higher during regular trading hours.