7 Mar 2016
EUR/USD: soaring oil prices dominate the bid - FXStreet
Valeria Bednarik, chief analyst at FXStreet explained that the American dollar posted a tepid advance during the first half of the day, but investors decided to re-sell the currency at better levels, sending it into negative territory in the American afternoon all across the board.
Key Quotes:
"Soaring oil's prices were behind dollar's weakness, with Brent surpassing $40.00 a barrel and WTI futures flirting with $38.00 a barrel, the highest since January 4th. The common currency found little support in local data, as the EU Sentix confidence index fell to 5.5 against previous 8.0 for March, while German Factory Orders edged 0.1% lower, above the -0.5% expected, but the second monthly decline in-a-row, indicating the economic slowdown is reaching the European largest economy.
Most major currencies rallied past Friday's highs against the greenback, but the EUR/USD pair barely advanced beyond the 1.1000 figure, ahead of the ECB's upcoming economic policy decision next Thursday. The Central Bank is expected to cut the deposit rate further lower into negative territory, although investors are also cautious on the probability of the announcement of additional measures."
Key Quotes:
"Soaring oil's prices were behind dollar's weakness, with Brent surpassing $40.00 a barrel and WTI futures flirting with $38.00 a barrel, the highest since January 4th. The common currency found little support in local data, as the EU Sentix confidence index fell to 5.5 against previous 8.0 for March, while German Factory Orders edged 0.1% lower, above the -0.5% expected, but the second monthly decline in-a-row, indicating the economic slowdown is reaching the European largest economy.
Most major currencies rallied past Friday's highs against the greenback, but the EUR/USD pair barely advanced beyond the 1.1000 figure, ahead of the ECB's upcoming economic policy decision next Thursday. The Central Bank is expected to cut the deposit rate further lower into negative territory, although investors are also cautious on the probability of the announcement of additional measures."