The outcome of the ECB meeting could set the tone for the euro
Investors managed to shrug off concerns over rising coronavirus cases globally, sending Wall Street stocks higher overnight following two consecutive sessions of losses. The yield on the 10-year Treasury slipped to 1.53% from 1.56%, adding to market optimism. As such, the S&P 500 and the Dow Jones Industrial Average rose 0.9% each while the technology-heavy Nasdaq added 1.2%.
Following the advance on Wall Street, Asian shares were broadly higher on Thursday despite the persisting worries about a surge in COVID-19 cases in countries including India. Japan’s Nikkei 225 index added 2.38%, Hong Kong’s Hang Seng rose 0.47%. In Seoul, the Kospi picked up 0.18% while Sydney’s S&P/ASX 200 gained 0.83%. The Shanghai Composite index bucked the trend to finish 0.23% lower.
In Europe, stocks opened higher in anticipation of the ECB meeting due later today. Elsewhere, the EU reportedly to vote next Tuesday to ratify the Brexit trade agreement. In individual stocks, semiconductor equipment maker ASML jumped 5.4% after it raised its full-year sales forecast, citing strong demand amid a global computer chip shortage. The pan-European STOXX 600 index rose 0.6% in early trading.
Meanwhile, the dollar remains steady on Thursday, struggling for direction since yesterday. The EURUSD pair remains capped by the 100-DMA that arrives around 1.2055 today. As long as the prices stay below this moving average, upside risks are limited. Later in the day, the outcome of the ECB meeting could set the tone for the pair. On the downside, the immediate support is now expected at 1.2000. US jobless claims could also affect euro dynamics through the greenback.