Traders leave US Dollar in favor of risk
US dollar entered a new selling wave in early European trading on April 29. Traders were opened to more risky investments, reassured by the upcoming central bank negotiations.
At 06:555 GMT the US Dollar index lost 0.2% and ended up at 99.673. EUR/USD gained 0.3% and stood at 1.0848. GBP/USD went up 0.3%, reaching 1.2462. Meanwhile USD/JPY dropped 0.3%, ending up at 106.55.
Despite leaving the safe haven, traders remained cautious. The market is also waiting for the results of the US Federal Reserve meeting, that comes to a close later this day. European Central Bank is planning to meet on April 30 to discuss guidance. The US central bank is not expected to introduce any significant updates, yet the traders are interested in hints concerning the more long-term plans of the organization.
European Central Bank is still under pressure to use more of its resources. The governments are still in disagreement over their mutual fiscal plans.
The forex market is also still under the effect of Fitch agency demoting Italy’s investment rating down to BBB-, next to junk level. The agency’s conclusion is founded on the rising national debt.
Oil prices are once again on the offensive. US crude gained 13% and were at US$13.98. Brent gained 1.9%, reaching US$23.16.