The dollar took a dive, reaching its lowest point in over a year, after the Federal Reserve noted that inflation remains consistently below its target mark of 2% even against the backdrop of an improving economy.
The euro is at a 30-month high as investors favour European sentiment over Washington drama and lagging US inflation.
The currency pair could remain bullish thanks to an upward sloping moving averages curve.
The Aussie dollar climbed 0.5% after adding 0.9% on Wednesday. The currency recovered on Thursday after Wednesday’s weak inflation data.
Today is one of the biggest days of the year for trading updates, with a flurry of corporate earnings being released, European equities are tipping upwards.
Germany’s Dax 30 took a hit after export results underwhelmed investors. Still, the index has reclaimed some of those loses and is set to turn green throughout the day.
US indices hit fresh highs on Wednesday after comments from the Federal Reserve. The members have decided that the US economy is ready to pare back its balance sheet as soon as September.
Meanwhile, Asian stocks climbed to record highs thanks to robust corporate earnings. Additionally, dampened US inflation expectations give emerging markets in Asia more room to prosper.
After three days of gains, crude oil gave up 0.25% of its value.
Crude could turn bullish later, supported by an upward sloping moving average and momentum curve.
After hitting a six-week high overnight, gold has shed some of those gains, but once again the safe-haven commodity is edging upwards, thanks to the weaker dollar.