This is what you need to know to trade today Thursday August 25:
The positive change in risk sentiment weighed on the dollar in the early European session on Thursday and caused the Dollar Index to drop towards 108.00. Reflecting the upbeat mood, US stock index futures are up 0.65%-1% on the day. The IFO is to release the results of its survey of business sentiment in Germany and the European Central Bank is to release the minutes of its July monetary policy meeting. Later, the second estimate of GDP for the second quarter from the US Bureau of Economic Analysis and weekly data on initial jobless claims will appear on the US economic docket. Central bankers could also give media interviews on the sidelines of the Jackson Hole Symposium.
Following the Chinese cabinet’s unveiling of a $146 billion stimulus package on Wednesday, Li Zhong, China’s vice minister of human resources and social security, said Beijing would focus on expanding employment and promoting of fiscal and monetary policies. The Shanghai Composite Index rises 1% daily.
Meanwhile, the oil prices Crude oil rose for the third day in a row on Wednesday on uncertainty surrounding the revival of the nuclear deal with Iran. The barrel of West Texas Intermediate (WTI) consolidates its daily gains around 95 dollars.
The EUR/USD it has picked up recovery momentum early on Thursday and has advanced beyond parity. The shared currency appears to be taking advantage of risk flows in the second half of the week. In an interview with Madame Figaro, the president of the European Central Bank (ECB), Christine Lagarde, stated that there will be repercussions on prices, insurance premiums and the financial sector if more and more climate disasters occur. Meanwhile, data from Germany showed the economy expanded at an annualized rate of 1.7% in the second quarter, above the flash estimate of 1.4%.
The GBP/USD it failed to post daily gains despite a rally attempt during US trading hours on Wednesday. With the dollar under ample selling pressure, the pair gained traction and advanced to the 1.1850 area in the early European session.
The USD/JPY remains under bearish pressure and approaches 136.50 in European morning. Bank of Japan (BOJ) board member Toyoaki Nakamura reiterated earlier in the day that the BoJ must patiently maintain powerful monetary easing.
The Prayed extended its bounce for the third day in a row and is now trading near $1,760.
The Bitcoin continues its sideways trend near $21,000 and the ethereum It trades around $1,700, with a daily gain of almost 3%.
Source: Fx Street
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