European stocks edged cautiously higher Thursday after weaker-than-expected U.S. economic data gave investors cause to anticipate that the Federal Reserve would cut interest rates at its upcoming July meeting. It should be noted that despite the disappointing data, major US indices including the Dow 30, the S&P500 and the Nasdaq closed higher yesterday. Today, July 4th, the US will celebrate its Independence Day with lots of fireworks, so we can expect muted market activity throughout the day.
Meanwhile, Donald Trump's two new nominations for the Fed board could be described as super-doves and it is clear that the US government is heavily working on their influence within the Fed and to essentially create and maintain a super accommodative central bank, which keeps stock markets on their way up in the face of weaker economic data.
How Long Can Monetary Easing Keep Markets Afloat?
With Lagarde as the potential new head of the ECB, also being a supporter of negative rates, it is more and more obvious that the central banks of the world have zero intentions of ever bringing a normal interest state back to reality and are chasing to keep up with stimuli wherever possible to keep things from crashing.
Forex Preview: Dollar Trades at One Week Low Against the JPY
The dollar was last seen trading flat against the JPY at 107.82 at 8:05 GMT after having tumbled to one week lows as falling Treasury yields boosted expectations that the U.S. Federal Reserve will cut interest rates this month for the first time in a decade. Elsewhere, the EUR held above the 1,1240 support while the NZD corrected after firming on a set of soft US data.
Oil Prices Retreat
Oil prices retreated this morning as they could not benefit from strong war threats of Donald Trump nor on a weaker than expected draw in the crude oil stocks which points to diminishing demand. Brent crude futures were last down 1% at $63.20 per barrel by 8:15 GMT after closing up 2.3% on Wednesday. U.S. West Texas Intermediate (WTI) crude futures were also down 1% at $56.74 per barrel after having finished the day up 1.9% on Wednesday.
Gold Inches Lower, BTC Up 3%
Gold prices inched lower this morning as a fresh wave of risk-on mood took over the markets, but remained supported by a weaker dollar and prospects of an interest rate cut by the Federal Reserve. Meanwhile, BTC continued to show strength and even touched the 12k level this morning from where it corrected mildly. BTC/USD was last seen trading 2.8% higher as of 8:20 GMT this morning.
Watch the video here:
Meanwhile, Donald Trump's two new nominations for the Fed board could be described as super-doves and it is clear that the US government is heavily working on their influence within the Fed and to essentially create and maintain a super accommodative central bank, which keeps stock markets on their way up in the face of weaker economic data.
How Long Can Monetary Easing Keep Markets Afloat?
With Lagarde as the potential new head of the ECB, also being a supporter of negative rates, it is more and more obvious that the central banks of the world have zero intentions of ever bringing a normal interest state back to reality and are chasing to keep up with stimuli wherever possible to keep things from crashing.
Forex Preview: Dollar Trades at One Week Low Against the JPY
The dollar was last seen trading flat against the JPY at 107.82 at 8:05 GMT after having tumbled to one week lows as falling Treasury yields boosted expectations that the U.S. Federal Reserve will cut interest rates this month for the first time in a decade. Elsewhere, the EUR held above the 1,1240 support while the NZD corrected after firming on a set of soft US data.
Oil Prices Retreat
Oil prices retreated this morning as they could not benefit from strong war threats of Donald Trump nor on a weaker than expected draw in the crude oil stocks which points to diminishing demand. Brent crude futures were last down 1% at $63.20 per barrel by 8:15 GMT after closing up 2.3% on Wednesday. U.S. West Texas Intermediate (WTI) crude futures were also down 1% at $56.74 per barrel after having finished the day up 1.9% on Wednesday.
Gold Inches Lower, BTC Up 3%
Gold prices inched lower this morning as a fresh wave of risk-on mood took over the markets, but remained supported by a weaker dollar and prospects of an interest rate cut by the Federal Reserve. Meanwhile, BTC continued to show strength and even touched the 12k level this morning from where it corrected mildly. BTC/USD was last seen trading 2.8% higher as of 8:20 GMT this morning.
Watch the video here: