- Euro Dips Below Key Mark
- Sterling Also Falls as Domestic Turmoil Remains
- Wall Street so Far Unaffected
The other major currencies in the forex market have started the week slowly, and under the continually grinding pressure of the US Dollar moving higher. The Euro has dropped back to its lowest point in some months below the key 1.19 mark while the GBP has also struggled to gain any positive momentum on the back of domestic political change there and rising COVID-19 case numbers that are a cause for concern. With all this going on, Wall Street is remaining bullish to kick off another week. The markets broadly moved higher yesterday despite a slight tick back in the industrials.
Euro Weighed Down Ahead of Key Speech
The Euro continued to slide lower against the Dollar today despite the fact that German CPI numbers came in around their estimate. The data came out on the mark posting a 2.3% year-on-year growth while the monthly number stepped back to 0.4%. Positive numbers from the June economic sentiment indicator were also not enough to stop the Greenback from gaining further ground on the common currency.
The focus for those forex trading the Euro now shifts to the words of ECB President Christine Lagarde as many seek the reassurance that has been so frequently delivered by the central bank chief and policymakers throughout this pandemic period. Mixed feelings and opinions on US inflationary pressure do not help as many traders opt to remain in the Dollar, though a further drop in Treasury Yields has at least helped the Euro retain some core strength.
Pound Remains Under Pressure and COVID Strain
Sterling was also dropping back in the early trading with forex brokers as it struggles not only under the weight of a healthier, stronger Dollar, but also concerns at home that come in multiple forms. These include financial strategy worries but are more dominated by health-related news at present.
Following the departure of Health Secretary Matt Hancock under the cloud of scandal and breaching pandemic regulations that he himself set out, the role of his successor has not been made easy with a rising number of COVID cases that is a growing issue. Many worry that this could further delay the full reopening of the country which is slated for July 19th.
Wall Street Remains Calm Under Pressure
Despite the noise from the outside, an uptick in coronavirus cases, and a strengthening Dollar, markets on Wall Street remain undaunted yesterday. The tech-heavy NASDAQ continued to move up strongly, posting gains alongside the S&P 500 even as the Dow Jones dipped by around 100 points.
Consumer confidence figures from the US will be the next data to drive the market today amid a quiet period for company earnings. Big-name banks though are delivering on their strong performances by increasing dividends as was today announced by Wells Fargo, Bank of America, and others.