FXTM information and reviews
FXTM
93%
IronFX information and reviews
IronFX
92%
Libertex information and reviews
Libertex
91%
FXCC information and reviews
FXCC
90%
Markets.com information and reviews
Markets.com
89%
FxPro information and reviews
FxPro
88%

Keep calm and carry on buying!


8 January 2021

After the shocking and momentous scenes in Washington yesterday evening, perhaps the two most important things to remember as a trader are that firstly, markets are forward-looking vehicles. They do not focus on the present or past, but on the future. Secondly, markets do have a long history of being unmoved by political violence as rioting and street violence have very little economic effect.

Dollar finds a foothold


Significantly, Congress ended up certifying the presidential election results which means a Democratic sweep in Washington and the prospect of more stimulus spending. Bond yields are higher again which is giving some welcome relief to the Dollar. Although the broader environment over the medium-term remains unchanged, certainly the bid in the greenback is offering some stablisation with its recent heavy losses.

The demand for USD also tallies with its seasonal characteristics as we often see the buck doing better at the start of the year. DXY will need to clear the end of November low around 90.47 to stand any chance of arresting the long-term downtrend and moving back towards the 92 level.

US equities: record highs


As if to reinforce the point about markets oblivious to political violence, stocks are making new highs as the sheer weight of money coming into risk assets driven by the medium-term optimism continues. Equity markets are very much pricing in better corporate earnings due to the expected economic boost from further fiscal measures. The tech-heavy Nasdaq has erased all its losses from yesterday and is peering into record territory as well. Are markets running ahead of themselves? The myriad of headwinds from last year are certainly no more (think Brexit, stimulus, vaccines…) and the central bank punchbowl is still very full, for now at least!

Two assets breaking records fast and catching the eye are Bitcoin and Tesla. The carmaker has now made Elon Musk the richest man in the world, after a 750% rise in the last 12 months. Meanwhile cryptocurrency prices have accelerated higher once again, crossing the stunning level of $1 trillion in total market cap for the first time in history. Bitcoin is approaching $39,000 while Ethereum has also surged higher, breaking back above $1200 for the first time since January 2018.

When certain assets experience such parabolic and explosive moves, technical analysis can be tricky as even the 20.5% correction  on Bitcoin witnessed last week now looks like a blip. Given how more action could on the horizon, it may be wise to hold onto your (crypto)hats while driving in your Tesla !

#source

Related

Oil reached a 2018 high
Oil reached a 2018 high

Oil prices are rising for the fourth day in a row. On September 24 trades, the Brent price reached its maximum since 2018. According to analysts, the price rise is influenced...

28 Sep 2021

German Elections In Focus
German Elections In Focus

Futures in the United States are rising, while those in Europe are falling as Germany gives its final verdict on its newly elected Chancellor. Germany is a European powerhouse...

27 Sep 2021

US Dollar Index gathers traction and tests 93.40
US Dollar Index gathers traction and tests 93.40

The greenback, when tracked by the US Dollar Index (DXY), starts the week on the same upbeat mood that finished the last one and re-visits the 9240/50 band on Monday...

27 Sep 2021

Space tourism takes off and opens colossal market
Space tourism takes off and opens colossal market

Space tourism is definitely on the rise. According to Bank of America Merrill Lynch, it could represent USD 2.700 billion by 2045, against 400 billion today...

24 Sep 2021

All Eyes On The BOE Meeting
All Eyes On The BOE Meeting

US and European futures are trading higher today, following the Fed’s announcement yesterday that the economy is exhibiting signs of strength and...

23 Sep 2021

Stocks steady on Evergrande debt assurance
Stocks steady on Evergrande debt assurance

Equities were mostly recovering on Wednesday as market nerves were somewhat calmed after China’s troubled property giant, Evergrande, told investors it will meet

23 Sep 2021


Editors' Picks

OctaFX information and reviews
OctaFX
86%
HotForex information and reviews
HotForex
85%
XM information and reviews
XM
80%
FXCM information and reviews
FXCM
79%
Vantage FX information and reviews
Vantage FX
78%
Moneta Markets information and reviews
Moneta Markets
77%

© 2006-2021 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.