DailyFX European Market Wrap: Geopolitics Keep Tensions High Ahead of Holiday Weekend
European markets end this short working week in the red as many traders begin their Easter celebrations early and others steer clear of any major moves considering the geopolitical tension.
Plus, US President Donald Trump caused US dollar declines by saying it is ‘too strong’ telling the Wall Street journal that this is partially his fault given that ‘people have confidence in me’. Trump also told the newspaper his administration would not label China a currency manipulator in an upcoming report, a complete reversal from what he said during his presidential campaign.
Meanwhile, gold is still enjoying impressive gains due to geopolitical nerves with gold companies such as Randgold gaining alongside the bullion. With the US dollar falling, both sterling and the euro gained – in turn grinding shares down on the bourses.
Royal Mail shares are gaining on plans to close its defined benefit pension scheme. In response to this news, it’s one of the FTSE’s top risers. Royal Mail’s current contributions to the scheme alone are about 10% of total salary costs, including wages of staff who are not members of the scheme and were expected to more than double to over £1bn in 2018. But the Communication Workers Union is threatening strike action over Royal Mail’s decision – saying it would cost the average worker a third of their future pension.
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--- Written by Katie Pilbeam, DailyFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.