Dollar is steering higher as Treasury prices wane. The euro is faltering under the weight of the geopolitical risks laid out for the bloc of nations.
Eurozone eases.
Concerns are mounting in the Eurozone; upcoming elections and blight of populism have clasped the zone, causing investors to turn bearish. Greece has added to the strife this morning. The International Monetary Fund are split on the terms of Greece’s bailout plan. Nerves have rippled through the market that the fund may pull out of the rescue-programme.
The IMF are accusing European policymakers of placing hazardous austerity measures on Greece, which is slowing the economy down.
The euro is trading downwards at $1.065 per euro, tantalizingly close to a two-week low.
European stocks have mostly escaped the Eurozone nerves. Equities have lifted on the back of a weaker euro, reaping the benefit of increased exports.
- CAC 40 is up 0.22%, trading at €4771.00
- DAX 30 is up 0.04%, trading at €11556.50
- DJ Euro Stoxx50 is up 0.06%, trading at €3238.00
Dollar Drives Demand
Across the Atlantic, in the US, dollar is making ground. The currency is enjoying an upward trend on the back of hawkish Federal Reserve meeting minutes. Additionally, the US president aims to dismantle the Dodd-Frank which would help to deregulate banks – this has set-off bullish tones for the greenback.
The positivity is spilling over to US equities, trading mostly upwards in this morning’s trade
- Nasdaq 100 is up 0.11%, trading at $5181.25
- DJ 30 is up 0.14%, trading at $20030
- S&P 500 is up 0.10%, trading at $2288.25
Commodities
Oil prices are under pressure ahead of today’s crude oil inventories. Investors are worried that OPEC’s efforts to curtail supplies will be refuted as US producers start to increase production. Crude oil is down 0.19%, trading at $51.58
Gold is climbing after a tumultuous few days. The strong dollar kept the safe-haven commodity down. However, the geopolitical uncertainties have finally lifted gold’s demand. Gold is up 0.22%, trading at $1235.58