- EUR / USD rallies after finding support again at 1.1750.
- Focus of attention continues in the stock exchanges and bond market.
- The European Central Bank will meet on Thursday.
The EUR / USD rallied and climbed to 1.1781, just shy of the Asian session high. Previously, the pair had fallen to 1.1750, the new low in three and a half months.
The dollar and a small retreat, continues to trend in favor
The dollar presents mixed results in the market on Wednesday and little change from Tuesday’s close, after having erased the gains in the last hours.
Futures on Wall Street are in positive territory. On Tuesday, the S&P 500 had the best day in four months, showing a recovery after Monday’s slide. The rebound is still not enough to remove investors’ fears, nor to propitiate a reversal in the current upward trend of the dollar.
With no economic impact data for Wednesday, the focus is on Thursday’s meeting of the European Central Bank. Changes in the interest rate are not expected, but there is expectation for the new form of communication, since it will be the first meeting after the approval of the new strategy.
If the positive climate continues in the stock markets, the dollar could have difficulties in continuing the upward path. The main support on Wednesday is the rebound in Treasury yields. The 10-year rate, which reached 1.12% on Tuesday, is at 1.24%.