After the ECB started to loosen monetary policy and the latest NFP came in as expected, the divergence between the central banks is starting to shape the outlook for EUR/USD.
- US Non-Farm Payrolls data encouraged some strength in stocks but saw a muted response from the dollar as the breakdown causes a little caution
- ECB acted to boost inflation which caused large volatility in the euro but investor scepticism could see the single currency drift further
- Copper is seeing a medium-term tumble, which may pre-empt some weaker Chinese data
- FTSE 100 is trading within a rising wedge pattern which is providing resistance but a bullish pennant may target 7,300
Spread Betting & CFD trading carry a high level of risk to your capital and you can lose more than your initial deposit. Only speculate with money that you can afford to lose. These trading products may not be suitable for all investors so seek independent advice.
Video content by Michael Hewson of CMC Markets.