Currency market don't share optimism

15 November, 2019

Key US indices continue to rush historical highs. Futures on S&P500 crossed the 3100 mark, adding one third to the price against the lows of the end of last year. Again the growth was based on the promises of Larry Kudlow, the White House economic advisor, said that US and China ‘getting close’ to trade deal. As many times before, he did not provide any details and did not give promises.

To see the full picture, we should also take into account that Trump still promises to raise tariffs if the deal is not reached. However, Kudlow’s optimistic tone after his meeting with Trump increased stocks purchases.

The US dollar retreated 0.3% on Thursday, which also indicates a potentially increased demand for risky assets. Although, the dynamics of other markets set up to a cautious touch of highs rather than a broad market rally.

On Friday, Asian indexes grew to Thursday closing levels, but lose a significant part of the growth from the initial jump on the opening. The Chinese yuan traded close to 7.0, but shy grew further from this point, which looks like a significant line on the sand. It is worth mentioning the suffering of South American currencies. The Chilean peso lost 2% on Thursday, bringing the losses since the beginning of the week to 7.7%. The Brazilian real and Argentinean pesos are also under increased pressure this week.

The cautious mood in the markets also applies to the Egyptian pound, Russian ruble, Turkish lira. Each case has its miseries. However, often in periods of genuinely massive optimism, investors are building up positions in these currencies due to their high yield.

What even more alarming is the increased demand for the Japanese yen and the Swiss franc to the US dollar this week. In both cases, the markets failed to cross the line in the form of 200-day average, which often acts as an indicator of the trend for large investment banks. Demand for this currencies often considered as a sign of uncertainty of currency market players in the context of the main trends break, finding the peak of trading optimism as an opportunity to buy “safe havens” somewhat cheaper.


Source   Presented by FxPro
Ethereum Volatility Drops Below Bitcoin's1 Jul, 2020  

Ether (ETH) options implied volatility, a measure of the expected price swings as per the options markets premium, has dropped below Bitcoin's (BTC) for...

Bitcoin Trends Sideways, Spotlight on Ethereum and DeFi26 Jun, 2020  

The first signs of a break in Bitcoin's low volatility and boring sideways price action may have started today. However, the last week of cryptocurrency market data...

Bitcoin Hits $9.6K as Bullish Crypto Sentiment Returns23 Jun, 2020  

A jump in the bitcoin market Monday after days in the doldrums mirrors the longer-term outlook of Fairlead Strategies' Katie Stockton, who sees an upward trend...


History may dictate direction of Bitcoin11 Jun, 2020  

The price of Bitcoin made another run for the $10,000 dollar mark in yesterday's trading session after the US Federal Reserve decided to keep rates on hold, which...

Bitcoin's Recent Rally May Have Run Its Course9 Jun, 2020  

Bitcoin fans have been heartened by its recent rally, but a technical indicator points to a potential slump ahead. Based on the DVAN Buying and Selling...

Bitcoin in focus as prices punch above $100003 Jun, 2020  

Everyone's favourite cryptocurrency has been thrown into the spotlight after surging past the psychological $10000 level for the first time since February 2020...


Bitcoin's bounce back over $9000 masks a potential downtrend28 May, 2020  

Bitcoin's trading above $9,000 once again, but technical indicators suggest the largest cryptocurrency is stuck in a funk. Though the price level may provide...

Bitcoin develop its decline27 May, 2020  

Bitcoin was still unable to overcome $9K gravity yesterday. For the first crypto-coin, ever lower resistance levels often turn out to be a pretty adverse scenario. Bitcoin loses about 1% per day...

Struck in sideway or breaking down-trend?20 May, 2020  

Bitcoin has been forming a sideways price trend of around $9,700 over the last three days. This can be considered bad news for the first cryptocurrency, as for the...