“The euro may not exist in 10 years’ time” – French presidential candidate Emmanuel Macron.
The former economy minister under Socialist President Francois Hollande said yesterday that the euro will have no future if Paris and Berlin fail to bolster the single currency union, adding that the current system benefited Germany at the expense of weaker member states.
His words and views will not be taken well by German Chancellor Angela Merkel and Finance Minister Wolfgang Schaeuble, whose conservatives face an election this year and have faced domestic resistance to bailouts for Greece by hawks who say such payments turn the euro zone into a “transfer union”.
These comments are likely to put some downside pressure on the EUR in the opcoming days, until an official member of the EU will decide to address Emmanuel’s views.
During yesterday’s trading day, we saw the USD showing weakness against the other major currencies as investors are concerned ahead of President-elec Trump’s press conference scheduled for today at 18:00GMT. Investors are concerned that Trump may roil world markets by taking a tough stance on China, trade policy, and Mexico.
Despite the concerns, the dollar edged up during the overnight session with mixed sentiments taking over.
The dollar rally sparked by Trump’s surprise victory in the November election has shown signs of fading, as the index has gone from a 14-year peak of 103.82 scaled on Jan. 3 to a low of 101.30 over the past week.
Amid jitters ahead of President-elect Donald Trump’s first news conference since his election victory, gold prices rallied to a six-week high yesterday and the precious metal is currently trading at $1,189.15.
Crude oil prices dropped further yesterday, after the API reports showed a 1.5m barrels crude gain, above the expected 900,000 barrels.
More closely-watched are the Crude oil inventories which will be released today at 15:30GMT.
U.S. stocks were mixed after the close on Tuesday, as gains in the Consumer Services, Basic Materials and Healthcare sectors led shares higher while losses in the Oil & Gas, Consumer Goods and Utilities sectors led shares lower.