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Market Snapshot – February 20

By:
FX Empire Editorial Board
Updated: Mar 4, 2019, 13:25 UTC

Market Snapshot - With the U.S markets are closed for President’s Day, it was a rocky start to the day for the Dollar, the Dollar Spot Index falling 0.09%

Market Snapshot - February 20

US Dollar Slightly Lower in a Low Trading Volume

With the U.S markets are closed for President’s Day, it was a rocky start to the day for the Dollar, the Dollar Spot Index falling 0.02% , though the Dollar managed to make a recovery through the Asian session and the European open, with a bounce back against the Yen providing support. The Dollar Spot recovering to an intraday high of 100.98, with a widening in Japan’s trade deficit doing little to weigh on market risk appetite in the early part of the day as China and Hong Kong equity markets made a strong start to the week.

Global Stocks Mostly Rise Despite European Political Concerns

European stock markets are mixed, with the DAX managing to move above 11800, but stocks will be struggling to keep above these important levels on a quiet day, with the U.S. on holiday. The FTSE 100 is underperforming amid a fresh bout of Sterling strength, after weak house price data overnight, and Bovis Home shares dropped as the builder said it will build fewer homes this year.

Eurozone peripherals, in particular France is underperforming amid ongoing election jitters and outrage over comments by hopeful Macron, which is feared to drive even more conservatives behind Le Pen. The modest gains in Europe followed a largely positive session in Asia.

Chinese bourses outperformed and Chinese shares traded in Hong Kong resumed their rally led by banks and automakers. Japanese markets fluctuated and the Nikkei managed a marginal 0.09% gain as the Yen fell back. Australia’s ASX meanwhile dropped slightly as AUD picked up. With the U.S. closed for President’s Day trading is quieter than usual.

Gold Steady as Traders Await Fed Rate Rise Clarity

Gold futures are trading slightly lower early in the session on Monday. The move may be a continuation of the selling that took place late Friday. The firmer dollar may also be influencing the price action as well as the slight rise in U.S. equity futures.

Gold has been reacting lately to the movement in U.S. Treasury yields. Today, is a U.S. bank holiday so that option will be gone since the Treasury markets are closed. Investors have also been buying gold as a hedge against political uncertainty in France.

Greece Weighs on Global Economy Stability

The Eurozone finance ministers will meet today to discuss Greece bailout plan. The Eurogroup will discuss the measures that Greece must take before 2019 in order to meet the fiscal targets.

The Greek government seek a bailout agreement before the election across Europe which might put their membership in danger.

EUR/USD is trading unchanged today as traders and investors are searching for direction. If you’re trading then expect to see two-sided price action, but be prepared for the occasional volatility spike.

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