Mario Draghi Stepping into Spotlight Soon
The U.S Dollar has stabilized the past few hours in forex but remains near its weaker values against the major currencies. Wall Street was cautious again on Wednesday, as investors anticipate President Trump’s Davos speech tomorrow.
U.S Dollar Reacts to Mnuchin Comments, Trump Coming into Focus
U.S Treasury Secretary Steven Mnuchin caused a storm in forex when he said a weak U.S Dollar would be good for the economy. The statement caused a chain reaction in forex. Wall Street experienced another cautious session on Wednesday. Investors seem to be waiting for President Trump’s Davos speech tomorrow, and Gross Domestic Product data which will also be released on Friday.
Nikkei Gets Hit Hard but Still Positive, Yen Trading in Range Short Term
The Nikkei Index was hit hard today and lost more than one percent of value. And the Hang Seng saw plenty of selling. However, both Indexes have posted vibrant gains the past month and remain in positive territory. The Yen has been strong against the U.S Dollar but has range traded the past few hours, it is near the 109.00 juncture. Inflation data will come from Japan tomorrow.
ECB Comments will Impact Euro Today, Strong Euro a Danger for Economy
The European Central Bank has kept their Minimum Rate Bid in place. However, the ECB’s Press Conference will start soon and cause fireworks. President Draghi’s outlook will be monitored closely. The Euro, along with the Pound, has made profound gains the past month. The Euro is above 1.24 against the U.S Dollar, and it is likely the European Central Bank doesn’t want their currency to gain too rapidly, which could harm the E.U’s economic recovery.
Pace and Strength of Commodities Impressive, Important Tests of Values
Commodity markets have seen bullish sentiment ignite and begin to test important values. Gold is near 1358.00 U.S Dollars an ounce and Crude Oil is above 66.00 Dollars a barrel. The pace and strength in the commodity markets make risk management essential for traders.
ECB Press Conference Getting Underway, U.S GDP Data on Friday
The European Central Bank’s Press Conference will get underway at 13:30 GMT and be watched far and wide.
- 13:30 PM GMT E.U, European Central Bank Press Conference
- 13:30 PM GMT U.S, Unemployment Claims
- 15:00 PM GMT U.S, New Home Sales
Yaron Mazor is a senior analyst at SuperTraderTV.
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