David Orth Real Wealth Markets Update – EUR/USD Pair Posts a 130 Pip Gain, Moving The Euro Higher

EUR/USD Pair Posts a 130 Pip Gain, Moving The Euro Higher

OIL’s surge up, gaining 4% on Thursday February 05, pushed U.S. Stocks higher with Energy and Material Sectors advancing. The $5.00 OIL move wiped out most of Wednesday losses and is again over the $50.00 a barrel mark sitting nicely at 50.58 (WTI). Upbeat quarterly Company earning also helped the DOW move on a very strong day to finish with a gain of 270 points, now at 17.793.00. Europe Stocks Markets also moved into positive territories.

Three catalysts spurred the Euro to move higher yesterday especially in the EUR/USD pair posting a 130 pip gain.
Rumours were prevalent that the Swiss National Bank is now ready to buy EUROs as the EUR/CHF also made some nice moves up. Secondly The ECB Quantitative easing program is having a significant effect in the recovery of bank lending creating some liquidity for new business. Lastly, the Euro simply hit a series of large stops propelling the often maligned currency to a nice recovery.

The US Dollar had no chance yesterday as the trade deficit in the United States widened as Exports decreased with the strong Dollar sucking in imports. This is the widest deficit since 2012.
Canada also had a trade balance report out that was also negative as Imports outpaced rising Exports according to Joe Nahas. The Markets though were happy as this was not as bad as expected and the Canadian Dollar have a rare good day gaining on all major competitors. OIL going up of course helped buoy the Loonie. The Toronto Stock Exchange also moved into positive territory.

The British Pound has had a wonderful three days of gains, up over 300 pips against the US Dollar. The Bank of England confirmed it will not lower Interest rates and the Manufacturing sector showed that output growth has rebounded, all this has helped the Cable go from strength to strength.

The Euro was the top mover yesterday with the CAD in second place followed by the GBP. Japan’s YEN was the weakest currency, a complete opposite of Wednesday when it finished the day ahead of the pack. How quickly things can change!

Important news releases for Friday 06 February at  www.davidorthrealweaalth.com.au

Australia – statement on Monetary Policy
Switzerland – statement on their Currency Reserves
Canada – Employment & Unemployment figures
United States – Non-Farm-Payrolls (new jobs created) – Unemployment rate

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