Risk aversion and dollar continues higher – FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that the American dollar edged higher against its European rivals for third day in-a-row, helped by late Monday FED’s officer comments on a rate hike being possible as soon as next April, and a terrorist strike in Brussels which spurred risk aversion at the beginning of the London session.

Key Quotes:

“Stocks plummeted and safe-havens gained, and while equities trimmed most of their losses before the close, local currencies remained under pressure.

Data coming from Europe generally surprised to the upside, as PMIs readings for March beat previous month numbers, with the Services sector clearly outperforming the manufacturing one. German Manufacturing PMI did disappoint slightly, falling from 50.5 to 50.4, but the IFO confidence index rebounded in March to 106.7, from 105.7 in March.

In the US, the Markit manufacturing PMI showed that growth in the sector is still subdued, as the figure was marginally up from 51.3 in February to current 51.4, whilst the Richmond FED manufacturing index bounced in March, from previous -4 to 22, showing that at least, local manufacturing activity expanded.”

Valeria Bednarik, chief analyst at FXStreet explained that the American dollar edged higher against its European rivals for third day in-a-row, helped by late Monday FED’s officer comments on a rate hike being possible as soon as next April, and a terrorist strike in Brussels which spurred risk aversion at the beginning of the London session.

(Market News Provided by FXstreet)