While Dollar Settles, Euro is under Pressure

While Dollar Settles, Euro is under Pressure

The Greenback lost some of its momentum yesterday as US interest rate hopes tumbled and as the U.S. economy is growing slowly.

  • The U.S. dollar index (DXY) failed to maintain its gains and declined to 100.34 pips.

Euro settled at its lowest levels in three weeks on concerns over the EU’s political outlook as France’s presidential election could determine the future of the European Union. However, the common market boosted as the Eurozone unemployment rate fell to 9.5% for February. Euro is hovering around $1.0670 vs. USD. Euro is eagerly awaiting the results of France's presidential election.

GBP declined to $1.2450 vs. USD as British manufacturing purchasing managers' index (PMI) fell to a seasonally adjusted 54.2 last month; however, markets had expected a rise to 55.1.

Gold pared its losses yesterday and settled at $1,253 amid uncertainty over the EU’s political outlook. Technically, the precious metal could hover around $1,245 in anticipation of FOMC minutes.

Oil prices back to declines as Libyan oil production resumed. U.S. crude fell to $50 in anticipation of the U.S. inventories data, which will be released tomorrow.

The most important economic events:

  • EUR ECB President Draghi speaks in Frankfurt: (GMT 13:30) – Important

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