Market Snapshot – Euro Rockets as Dollar Gets Battered

Euro Rockets as Dollar gets Hit

The ECB President Draghi tried his best to hold down the Euro but the fact that he was trying too hard was easy for the market to notice. He did sound dovish during the early part of the speech and the market responded by pushing the euro down by a bit but as he played the card for too long, the market began to realise that he was trying to sound dovish not due to the fundamentals being bearish but for the sole reason of pushing the euro down. The market then began to recover as the traders began to realise that he was not so dovish after all and this pushed the EURUSD pair through 1.1550. Then came the news that Muller and a special council is likely to extend the investigation into the business transactions of President Trump and this battered the dollar even further and the pair shot through 1.16 and it trades comfortably above that as of this writing.

Stock Markets Likely to come under pressure

Earlier in the day, the markets in Europe waited for the right signal from the ECB but with the euro rocketing higher, it is likely that the DAX and the other stock markets in Europe would come under pressure in due course of time. There was not any clear indication of easing in the press conference from today but the market can smell that it is not too far away and with the yields and bonds set to rise along with the currency, the stock markets are likely to be hit very hard.