The market has picked up on volatility. USD has stabilized within a range against most pairs. EUR/USD is down 0.1% at 1.0680, hovering just above a 1-week low at 1.0640 reached on Wednesday. GBP/USD is also treading water between 1.2542 and 1.25.
Today does not feature any major news announcements so trading will likely be more technical, while market participants will continue to pay any attention to Trump politics. US will release Jobless Claims this afternoon, which will be watched to get an idea about the labor market in February.
US stocks have continued to post record highs on the back of optimism stemming from the potential tax cuts that Trump promised. The optimism also spilled over to Asia as investors grew more confident about China while the dollar slightly firmed in the wake of growing concerns over political instability in Europe. It has to be noted though, that no tax reliefs have been announced yet, so the market could be trading ahead of itself.
Gold continues its march high, and posted a new high since 11th of November at $1245. Paradoxically, gold tends to fall when stock rise, hover this time they move in tandem. It will not be long until this correlation is broken once again.
Oil enjoyed a bullish recovery after dropping 4% earlier this week posting lows of $51.20. Oil trades at $52.78 at time of writing, supported by rising stock markets and growing optimism over more demand in the near future.
