EUR/USD hits one year highs, Oil struggles to recover.
Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
1. Dollar hits 8-month lows
The dollar remained under pressure, hitting 8-month lows after Senate Republican leaders postponed a vote on a sweeping healthcare reform until after Congress’ July 4 recess, in order to get more time to gather support for the bill.
The delay sparked concerns over the Trump administration’s ability to push through tax cuts and fiscal stimulus plans, without first getting the healthcare bill passed.
The decline in the dollar also boosted Gold prices on Wednesday as the commodity priced in the greenback becomes cheaper for investors using other currencies.
2. Euro rally continues
Dollar weakness contributed to the continuation of the rally in the Euro as EUR/USD hit highs of 1.1388 Wednesday, the highest level in a year.
The currency rallied 1.39% on Tuesday, its biggest 1-day percentage gain since last June after upbeat comments from European Central Bank President Mario Draghi fueled speculation that the central bank could soon unwind its quantitative easing program.
3. Central banks on focus
After a series of monetary policymakers spoke in the previous session, including Federal Reserve (Fed) chair Janet Yellen who proclaimed she did not expect another financial crisis in “our lifetimes”, the downpour will continue on Wednesday as central bankers remain at the European Central Bank’s (ECB) forum in Sintra, Portugal.
The highlight will arrive with the policy panel scheduled for 15:30 GMT Wednesday with the participation of Bank of England (BoE) governor Mark Carney, ECB president Mario Draghi,
Bank of Japan (BoJ) governor Haruhiko Kuroda and Bank of Canada (BoC) chief Stephen Poloz, and moderated by Bank of Israel governor Karnit Flug.
On economic calendar stateside, investors will focus on trade data and pending home sales, both for the month of May.
4. Oil struggles ahead of U.S. data
Oil prices were fighting to recover in early morning North American trade on Wednesday, paring losses as investors looked ahead to weekly data from the U.S. on stockpiles of crude and refined products later in the global day.
After markets closed Tuesday, the American Petroleum Institute said that U.S. oil inventories rose by 851,000 barrels in the week ended June 23, surprising expectations for a drawdown of 2.6 million.
The U.S. Energy Information Administration will release its official weekly oil supplies report at 14:30 GMT, amid forecasts for a decrease of 2.585 million barrels.
Investors will also be on watch Thursday for details from U.S. President Donald Trump’s energy speech.
