- EUR/USD Hits Two Week High
- GBP/USD Also Moving Amid Positive Market
- Market Awaits Important US Testimonies
Major markets and forex trading worldwide were encouraged by a robust market comeback to start out the week. In the US, the Dow Jones surged quite 900 points on Monday. This marked a big gain and shift in sentiment. The move has given life to both the Euro and British pound markets with the Dollar as traders begin to sense some positive light breaking through the Coronavirus crisis. Asian markets followed the American lead on Tuesday with some substantial gains noted.
EUR/USD Forex Market Breaks Out of Slump
The Euro has been held down by negative data and risk-off sentiment for the last few weeks, trading below $1.08 at some points. Following yesterday’s rally though, the pairs has traded toward a 2-week high of $1.095. this is often seen as positive news for the Euro after a turbulent few weeks. It comes off the rear of more positive data coming from Germany with their ZEW indicator of market sentiment surpassing expectations within the correct direction.
A virtual meeting of the EU finance ministers later today also will have the interest of traders within the forex market. A positive tone from this, and more measures to assist the struggling economies of the bloc like the ecu recovery fund which has already been proposed, could give the market further strength moving through the week.
Sterling another Beneficiary of Improving Mood
Along with the positive market push, the GBP/USD has also seen some benefit, today sitting round the 1.22 mark amid the more positive market sentiment than in previous weeks. this might have come yesterday as a way needed boost for the Pound. Employment data to be released later today could weigh heavily on the currency with forex brokers anticipating an anxious day from British traders.
Much of the positive swing from yesterday’s markets worldwide came off the rear of positive signs from Moderna and therefore the early stage human trial of the coronavirus vaccine. These trials managed to supply Covid-19 antibodies altogether of the 45 participants of the trial. This sent a positive wave through the markets, and gave the businesses own shares a 20% boost on Monday.
All Eyes on Powell and Mnuchin Testimonies
Whether or not the wave of positive market sentiment is to continue today could rest largely on the testimonies of Federal Reserve System Chairman Jerome Powell, and Treasury Secretary Steven Mnuchin. they’re both set to brief congress today on the state of the economy in response to the coronavirus.
Fed Chair Powell is predicted to strengthen remarks made yesterday that the financial institution has many power left to support the economy. He has also indicated that the Fed remains wholly committed to using any means appropriate to support the economic challenges ahead. These quite bullish remarks could also be just what the forex market et al. got to hear to continue the positive momentum.