European stock markets try to recoup yesterday’s losses
Bitcoin deepens declines
Important data for USDCAD
The end of the week is marked by the gains of European stock benchmarks following a biggest drop in a month yesterday. Euro advances against US dollar after yesterday’s ECB conference. AUD remains the strongest currency from G10 basket. Gold inches higher amid USD weakness while oil is trading mixed.
Nobody should be taken by surprise that OPEC wants to maintain high oil prices as it leads to higher budget income, more investment spending which combined could help keep financial stability when prices go down. Moreover, there is another reason why the Cartel could want to keep high crude prices namely the largest initial public offering in history.
Bitcoin has begun the last session this week with a decline after rebounding from a crucial resistance line which has served as an obstacle for bulls of late. Nevertheless sellers might face their first hurdle in form of a short-term support line.
Following yesterday’s worst drop of European equities in a month benchmarks from the Old Continent edge higher on the opening. The sentiment on the stock markets in Europe looks solid as even stronger post-ECB euro is unable to halt gains this morning.
Being several hours after the ECB press conference one may say that Draghi’s dovish rhetoric has kicked in at least to some extent. The EURUSD came off from above 1.25, however it was not sufficient to see a larger rebound in the US dollar index being traded 0.4% lower at the time of writing.
After preliminary UK GDP print has been released already we will not see any other relevant data from Europe today. However, in the afternoon important figures from US and Canada are about to be published thus FX traders should expect increased volatility on the USDCAD.