FXTM information and reviews
FXTM
95%
OctaFX information and reviews
OctaFX
94%
XM information and reviews
XM
93%
FXCC information and reviews
FXCC
92%
Libertex information and reviews
Libertex
91%
FxPro information and reviews
FxPro
90%

Calmer seas on Friday the 13th?


13 November 2020

Asian stocks are mostly tracking Thursday’s declines on Wall Street, with most US and European equity futures edging lower at the time of writing. The VIX is now around its lowest levels since August, while the VIX futures have returned to pre-pandemic levels. Meanwhile, volatility in the currency markets around the world has reached a near 4-month low, as measured by the J.P. Morgan Global FX Volatility Index.

Market sentiment is merely bobbing about amid the cross currents in global financial markets, with investors awaiting the next gust of wind that could bring them further into risk-on waters. Monday’s post-US elections cheer and vaccine optimism have clearly ebbed, with market participants now facing a tepid end to the trading week.

Central banks urge cautious optimism


That isn’t to say that investors have nary a care in the world; there are dangerous undercurrents lurking below the surface. The persistent concerns over the state of the global economy, given the alarming resurgence of Covid-19 cases across major economies, from the US to Japan, have given risk-appetite reason to pause.

Investors should pay heed to the words of caution from some of the world’s most influential central banks, namely the Fed, ECB, and the BOE, whose chiefs have just warned against getting too excited about what a vaccine could actually contribute to the global economic recovery. The vaccine, when it reaches the world, may not be potent enough to immediately heal the mental scars left by the pandemic. Such an outlook suggests that more concerted monetary and fiscal support may be required in order to facilitate a full global economic recovery, with a longer runway potentially needed before marking such an event. Investors’ fears that this Covid-19 resurgence across major economies could derail their fledgling recovery are keeping safe havens well bid, with the Dollar index not straying far from the 93.0 mark for now.

Gold set to form death cross


Speaking of safe havens, a traditional pillar of this asset class appears to be falling out of favour. Gold prices are set to form a death cross, with its 50-day simple moving average about to move below its 100-day counterpart. Such a technical episode may herald further declines in the precious metal.

However, with US Treasury yields essentially halving its advance from the first half of the week and pulling further below the psychologically-important 1% level, it allows Bullion some breathing space for now.

Still, Bullion bulls are at risk of being left at the altar, waiting on more significant policy signals as to how US inflationary pressures will be boosted. Given that Thursday’s release of the October US CPI prints came in below market expectations, Gold may find itself on a softer footing, curtailing attempts to push higher from current levels.

Unless Friday the 13th lives up to superstitions and investors are blindsided by an “unlucky” event, it’s set to be a ho-hum day in global markets.

#source

Share:


Related

Trading the SPDR S&P 500 ETF Trust
Trading the SPDR S&P 500 ETF Trust

The Standard & Poor’s (S&P) 500 Index measures the market capitalisation of the top 500 US largest corporations. Many traders and investors use the S&P 500 Index as a benchmark...

23 Sep 2022

Gold pauses as traders await Fed decision
Gold pauses as traders await Fed decision

The anticlimactic performance of gold continues as the prospect of aggressive rate hikes by central banks around the world amid heightened inflationary pressures...

21 Sep 2022

Developing a forex trading plan: All you need to know
Developing a forex trading plan: All you need to know

All forex traders have different backgrounds, market views, risk appetite, thought processes and expectations. Therefore, traders should not just blindly follow what other traders do...

20 Sep 2022

NordFX: Forex and Cryptocurrencies Forecast for September 19-23, 2022
NordFX: Forex and Cryptocurrencies Forecast for September 19-23, 2022

The World Bank said last week that risks of a recession in 2023 are growing amid simultaneous tightening of monetary policy by the world's leading Central banks and the energy crisis in Europe...

19 Sep 2022

Gold gains traction on the back of weaker dollar
Gold gains traction on the back of weaker dollar

The precious’ recent rally from its near year-to-date lows could be attributed to the broader dollar weakness observed in the past week, even though it remains elevated near its 20-year highs...

14 Sep 2022

NordFX: Forex and Cryptocurrencies Forecast for September 12 - 16, 2022
NordFX: Forex and Cryptocurrencies Forecast for September 12 - 16, 2022

The past week was marked by two significant events. First, the EUR/USD pair updated its 20-year low on Tuesday, September 06 once again, falling to 0.9863...

12 Sep 2022


Editors' Picks

HFM information and reviews
HFM
89%
IronFX information and reviews
IronFX
88%
FXCM information and reviews
FXCM
87%
NordFX information and reviews
NordFX
85%
Vantage information and reviews
Vantage
84%
FP Markets information and reviews
FP Markets
81%

© 2006-2022 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.