Market Snapshot – Dollar on the Backfoot

Dollar Rebound Hits a Pause

The dollar has been on the backfoot during the course of the day as the sentiment around the Eurozone has been improving during this period and we have been seeing the dollar suffering as a result. In any case, a correction in the dollar rebound was something that was to be expected anytime soon and it is good that it came during this period. Most of the dollar based pairs were near their strong supports and hence it is natural to expect some sort of a bounce. It is likely to last for the short term and once the data flows in from the US and other countries next week, then we should have an idea where the respective economies stand and this should then give us the next direction as far as the currency pairs are concerned.

Stock Markets Move Higher

The stock markets have been moving higher on the back of the new tax reform plan that was announced by Trump yesterday. Though the announcement has been made, it remains to be seen how far he would be able to pass it through the Senate as he lacks support from within his own party as well. But the market does not seem to be caring about all that just yet and that is why we are seeing the US stock markets moving higher and many of the global stock markets following suit as well.