FTSE 100, DAX 40 and Nasdaq 100 Begin Week on Cautious Footing
Outlook on FTSE 100, DAX 40 and Nasdaq 100 amid escalating tensions in the Middle East alongside US Q1 earnings season.
Outlook on FTSE 100, DAX 40 and Nasdaq 100 amid escalating tensions in the Middle East alongside US Q1 earnings season.
The Aussie dollar typically acts as a sentiment gauge, following the S&P 500. Risks of a broader conflict in the Middle East and policy divergences keep AUD on the back foot
The US dollar powered ahead in the second half of the week after the latest CPI reading showed US nudging higher.
Gold climbed this week, setting a new all-time high near $2,430. However, prices eventually backed off those levels, closing near $2,345 on Friday.
The euro suffered a major setback this week, primarily against the U.S. dollar. The European Central Bank's dovish guidance laid the groundwork for the common currency's downturn, but rising geopolitical risks in the Middle East also weighed.
Contrasting data in the US and Europe highlights the need for policy divergence between the Fed and European Central Bank – weighing on EUR/USD
The US dollar index opens higher in Europe, aided by a weak Euro, and is back at highs seen last November. Gold is unfazed by US dollar strength and continues to print new highs.
The prospect of the ECB starting its easing cycle before the Federal Reserve and the Bank of England and delivering more rate cuts than both institutions this year may put downward pressure on the euro against the U.S. dollar and sterling in the near term.
Precious metals have eased slightly in the wake of the elevated CPI report. Both gold and silver currently test significant levels of resistance
The European Central Bank left all three official rates unchanged as expected. Traders are now focusing on the press conference for any clues on when the ECB will start cutting rates