Market Snapshot – All Eyes on the Dollar

Eurozone Stock Markets Move Up

The European stock markets have been in a buoyant mood today but it remains to be seen whether this is just a correction of the fall that we have been seeing over the past few days or whether this is likely to turn out to be a full blown reversal. The gain in the stock markets have been based on reports that the ECB would not act much on tapering during its July meeting and this is likely to keep the stock markets buoyed as they would be happy to know the delay in this. We believe that the ECB would continue to hold steady for the next few months and it is only in the later months of the year that we would probably see talk of tapering rise its head again.

Market Waiting for the Dollar Trend

It is the first day of the week and the US markets are about to open and it would be interesting to see whether the US traders would be able to take the ball and make a run. The NFP data certainly helped the dollar bulls to get out of the rut that they were in and this also helped to bring about a turn around in the US data. Though the effect of that on the various currency pairs were pretty much limited on Friday, it is expected that a follow through of that move would be seen today. The dollar bulls need to show some strength and some follow through and make a stand else they run the risk of being crushed.