American dollar jumpstarts on dovish ECB stance, global stocks weaken


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American dollar jumpstarts on dovish ECB stance, global stocks weaken

On Thursday, the 7th of March 2019, the American Dollar Index (DXY) had posted its biggest intra-day gains since November 12th and tested its July 2017 high at 97.69, before closing the day at 97.60.

Market had been treading water before the ECB minutes and US Dollar had been holding strong around 96.50 region, although failed to breach its critical resistance level against a basket of six major currencies.

Nonetheless, after ECB had announced a delay in rate hike and new fiscal injections citing the eurozone slowdown had been more grievous than previously assumed, US dollar jumpstarted, while the US dollar had gained more than 0.25 percent to 96.86 against a gauge of six major currencies and the DXY posted its biggest intraday gain since November, after testing a daily high of 97.69.

Analysts are expecting further uphill breakthrough ahead of tomorrow’s (March 8th) US non-farm payroll report and February unemployment data. Following the release of dovish ECB stance, US dollar had gained a stack of global currencies including emerging market currencies and majors as well, while the global stock market had been slumped for fourth day in a row, its longest run in the red since December, 2018.

MSCI’s index of stocks across the world that keeps track of 47 stock exchanges had shed 0.77 percent and breached a critical support level, falling behind its 200-day moving average for the first time since mid-February, while analysts are predicting further downswing momentum ahead.

At a wet & stormy day in the stocks and currencies, while ducks and seagulls had been playing in rain, putting large buyers asleep, sellers had taken complete control, as commodities appear to regain safe-haven appeal and Spot gold had managed to stay flatlined at 1286.83 an ounce after falling for five days in a row, alongside both UK and US crudes posted gains.

Over Thursday’s (March 7th) intra-day trading, US crude rose by 0.85 percent to $56.70 per barrel, while UK crude added 0.39 percent to $66.25 a barrel.