- Euro Pushes Back Above Key Level
- Pound Recovers as Reopening Continues
- Market Mood Positive as Retail Sales Explode
The Euro forex market has broken above the 1.20 mark as the continent starts to report a reduction in the number of COVID1-9 cases although numbers are still elevated. The Pound too has taken some advantage of Dollar weakness and managed to recover from its own weekly lows. The key driver would seem to be the US retail sales smash as the number jumped by 9.8% in March backed largely by stimulus check spending. This positivity has also been felt on Wall Street.
Euro Stronger Again Despite Domestic Challenges
The entire European continent has recently had its own struggles spearheaded by a resurgence in COVID-19 case numbers around the region. France has been particularly impacted with several restrictions in place again. Coming toward the weekend though, there are signs of hope which have spurred the currency above 1.20 in forex trading.
Among the factors behind the upward movement is the fact that declining case numbers have been reported in Paris. This is a small win for the Euro with the movement away from the safety of the US Dollar also playing a role. The decline in treasury yields has also seen movement toward the weak side for the Greenback as traders move away from the safe haven. This comes only weeks after yields hit recent highs at 1.77%.
Reopening Boost for Sterling
Sterling is also continuing a positive turn for the week against the Dollar. Forex brokers had seen a dip in strength from the highs earlier in the year though the currency pairs now looks to be on more stable ground trading above 1.38 today.
This move has been preempted in part by the successful vaccination campaign to date in the UK. With the reopening in England of pubs, bars, and gyms earlier in the week providing an initial boost to the Pound, the run has continued on the back of Dollar weakness. Maintaining the pace of the vaccine program now takes center stage for the UK. This is not all that easy given the ongoing wrangle with the EU over the jabs, and growing concerns over the safety of the AstraZeneca vaccine in particular.
Huge Retail Sales Help Market Move Higher
There seems to be simply no end in sight at the moment for the positive moves upwards on Wall Street. Markets have edged higher still today supported by a huge boost to retail sales figures for March.
The number beat expectations to rise 9.8% as the impact of many Americans spending their $1400 stimulus check has been felt. First time applications for unemployment benefits also plunged to add to the good economic news of the week. The estimate of 710,000 jobless claims was easily eclipsed with the actual number much lower at 576,000. With all the positivity comes new record highs too. The Dow Jones peaking over 34,000 for the first time.