One of the most important events of today is a refutation of the Chinese authorities regarding the termination of purchases of US Treasury securities, stating that "the wrong source" may have been used in the previous report. This news has spurred stock markets and the S&P500 and Dow Jones indices updated with a remarkable vigor.
However, the dollar has suffered greatly after the release of weak data on consumer prices and the increase in the number of unemployment applications. Yesterday's statements by Robert Kaplan and James Bullard were optimistic, but failed to have a significant impact on the markets. The stock market in the UK also showed a positive trend.
After the release of the ECB report the single currency began to strengthen, and at the moment the EUR/USD is above the mark of 1.21. In the report it was shown that the change in salaries has been welcomed, however, there is still a matter of concern - the low rate of inflation. In the last month we have seen that the region's economy is in continued recovery. Because of this, in the near future we expect a strengthening of the single currency.
