17 Jan Market Snapshot – Stock Markets and Dollar Under Pressure
European Markets Under Pressure
The European stock markets seem to be struggling, just the way that the dollar has been too. They are both struggling for vastly different reasons though. The dollar is struggling as the incoming data has been choppy while the stock markets in Europe have been struggling despite some strong economic data from different parts of the Eurozone. In fact, the struggle in the European stock markets is likely to get more and more as the economic data picks up and each good piece of data is likely to push the QE towards its end and this would mean the end of the funds from QE for the stock markets and this isnt good news for them. That is the reason why we are seeing the markets under pressure.
Dollar Under Pressure as Well
In the FX world, we continue to see the dollar on the backfoot as the euro, pound and the yen gain against it. The yen has been strong which has since pushed the USDJPY pair through towards 110.5 where the bears would have to deal with some strong support and a lot of buying as well. This is likely to stall the progress for now but it remains to be seen how long the buyers would be able to hold out before this region also gives way to the onslaught against the dollar.
This article was originally posted on FX Empire
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