Victor Camargo 22/04/2021
Still above the 1.20 region, the euro reversed recent gains to be traded infall this Wednesday, in a session with enough news. The ECB maintained itsunchanged monetary policy as well as the promise to increase support, should itrequired. President Lagarde said at the ECB press conference that, althoughinflation has increased in the past few months due to temporary factors, the pressureon prices remains moderate in the context of significant economic slack and thedemand is still weak. She added that economic activity is expected torecover steadily over the course of 2021, due to progress invaccination and the expected gradual relaxation of the restriction measures.
In contrast, the DXY index reversed recent losses and was trading higherthis week when investors turn to less secure assets on account ofless of a concern with inflation.
With the recovery of the dollar, investors moved away from gold that was fallingmore than 0.5% today, trading around USD 1780 an ounce. The increase incoronavirus cases in countries like India and Japan that have led to new measures ofrestriction prevented greater losses for the metal.
The number of Americans filing new claims for unemployment insurance has dropped to547,000 in the week ending April 17, the lowest level since March 2020,when the mandatory closure of non-essential companies was applied in manystates to curb the spread of COVID-19. Orders were also belowexpectations of 617 thousand, as continuous movements to reopen the economysupported the labor market, helped by the AIDS pandemic aid packageUSD 1.9 trillion from the White House and an acceleration in the pace of COVID-19 vaccinations.In addition, unadjusted claims dropped to 566,000 last week from623,000 in the previous week, with the biggest declines being recorded in Texas, NewYork, Florida and Georgia
Source: https://wintrademarkets.com/
