FXTM information and reviews
FXTM
93%
IronFX information and reviews
IronFX
92%
Libertex information and reviews
Libertex
91%
FXCC information and reviews
FXCC
90%
FxPro information and reviews
FxPro
88%
OctaFX information and reviews
OctaFX
86%

USD Holds on to gains


19 January 2021

The USDIndex has posted a one-month high at 90.88, which sets up potential for a third consecutive up week, something that hasn’t been seen since January last year. Other currencies have mostly softened, especially the dollar bloc and other cyclical currencies as global stock markets have continued to sputter. Chinese equities have been the exception, with the CSI 300 showing over a 1% gain in the late afternoon session having rebounded out of early declines following strong growth data. China Q4 GDP rose 6.5% y/y, beating the median forecast for 6.1%, with full-year growth coming in at 2.3%, which is impressive given that all other major economies contracted. Equity markets in Asia outside of China failed to catch a coattail, with the main indices in Japan, South Korea and Australia, for instance, all racking up fairly hefty declines.

Stock markets around the world have lost the "great reflation trade" spirit that had been so strong in November and December. Various factors seem to account for this. One is that the winter surge in Covid-19 across the densely populated northern hemisphere has been perhaps worse than many had been anticipating, leading to tight societal restrictions across major economic areas, albeit not as severe as seen during the ‘mother lockdowns’ seen in the first wave.

New variants in the SARS-Cov2 coronavirus has been a further concern, given the risk they could render current vaccinations less effective or even ineffective (a better understanding about this should emerge over the coming weeks). This has come as asset valuations at lofty levels, ranging from the record highs in US Indices to the nine-year highs in iron ore prices, and with investors relatively low on spare cash. In the mix was an apparent sell-the-fact type of reaction after US President-elect Biden last Thursday confirmed a $1.9 tln fiscal spending package. The transition of political power in the US this Friday is also being viewed as something of a risk event, given the threat of violent protests. The cautious sentiment looks likely to persist for now.

European stock markets have traded cautiously mixed so far today. The GER300 is currently up 0.03% and the UK100 down -0.27%, while US futures are posting fractional losses. The US markets are closed for Martin Luther King Jr Day today, which is making for quieter trading conditions as investors are also questioning how much of Biden’s stimulus program will survive the approval process.

Elsewhere, EURUSD trades down again, earlier posting a new seven-week low at 1.2053, which extends a two-week run lower. The pair has corrected from the 33-month peak that was seen last week at 1.2350. Cable ticked lower under S1 to 1.3518, and USDJPY is oscillating through today’s daily pivot point at 103.75. USOil has recovered from a test of the 200-hour moving average earlier at 51.80 to trade at $52.25 and Gold, having plummeted to $1810 on open, has recovered to its daily pivot point at $1836. The 200-day simple moving average ($1842) was breached and broken on Friday for first time since November 30 last year.

#source

Share:


Related

The EUR/USD Price Prediction 2022. The Bulls or the Bears, Who Will Prevail?
The EUR/USD Price Prediction 2022. The Bulls or the Bears, Who Will Prevail?

Euro/US Dollar (EUR/USD), for which we will provide the price forecast for the year 2022, is the most actively traded currency pair on the foreign exchange market, also known as Forex or FX...

2 Dec 2021

The greenback remains calm
The greenback remains calm

EURUSD is rather calm on Thursday; the pair is waiting for the news. The major currency pair reached stability while waiting for the news. The current quote...

2 Dec 2021

EURUSD is "seasick"
EURUSD is "seasick"

EURUSD will have to consider an earlier reduction of the US QE programme. The major currency pair reached stability on Wednesday after "rolling in rough weather" the day...

1 Dec 2021

The demand in the greenback is increasing
The demand in the greenback is increasing

After making a short pause on Friday, EURUSD is falling again. The major currency pair is under pressure again after a short break. The current quote for the instrument...

29 Nov 2021

The Euro's oversold is a sign for more volatility to come
The Euro's oversold is a sign for more volatility to come

The Euro fell against the dollar to 1.1200, a new 16-month low, having lost more than 4% in the last four weeks. The downward trend in the single currency accelerated...

26 Nov 2021

EURUSD is knocked out again
EURUSD is knocked out again

After testing another “bottom”, the major currency pair is consolidating. EURUSD continued falling and tested another low yesterday; right now, it is consolidating....

25 Nov 2021


HotForex information and reviews
HotForex
85%
XM information and reviews
XM
80%
FXCM information and reviews
FXCM
79%
AvaTrade information and reviews
AvaTrade
76%
LegacyFX information and reviews
LegacyFX
75%
FP Markets information and reviews
FP Markets
72%

© 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.