FXTM information and reviews
IronFX information and reviews
Libertex information and reviews
FXCC information and reviews
Markets.com information and reviews
FxPro information and reviews
48 224.00

Equity bulls ride on stimulus optimism

28 July 2020

Global equity bulls may continue their unstoppable momentum this week as investors weigh expectations for another U.S stimulus package against the coronavirus menace.

Market speculation around the Federal Reserve reinforcing its dovish message in the face of US-China tensions, mixed economic data and rising coronavirus cases provide an argument for stock markets to push higher in the near term. While stimulus hopes and low-interest rates are empowering equity bulls, the million-dollar question is for how long?

The explosive movements witnessed across currency and commodity markets over the past few weeks continue to highlight how global sentiment remains fragile to coronavirus developments. Looking at the Chicago Board Options Exchange's CBOE Volatility Index (VIX) which is a measure used to track volatility on the S&P 500, it has declined over the past few days. However, there could be a rise VIX ‘fear-gauge’ this week if earnings disappoint and US-China tensions mount.

Equity bears still have enough ammunition to make an unwelcome return should global growth concerns and rising coronavirus cases among many other negative themes rekindle risk aversion.

Dollar in the dumps…

There was no love for the Dollar yesterday as sharp increases in US coronavirus cases rattled investor confidence. The once mighty Dollar has depreciated against every single G10 currency since the start of Q3 and is currently trading at levels not seen in two-years below 93.80!

Looking at the technical picture, prices are heavily bearish on the daily charts as there have been consistently lower lows and lower highs. Sustained weakness below 94.00 may encourage a decline back towards 93.50 and 93.00, respectively. If prices can break above 94.00, then a technical bounce back towards 94.40 and 94.70 could be on the cards.

EURUSD sprints to multi-year high

Euro bulls wasted no time in exploiting the Dollar’s weakness to propel prices to levels not seen since September 2018 above 1.1760.

Over the past two weeks, the currency pair has jumped over 400 pips thanks to renewed buying sentiment towards the Euro and a depressed US Dollar. While prices have the potential to push higher once the 1.1760 level is conquered, a technical correction could be around the corner. If 1.1760 proves to be reliable resistance, the EURUSD is likely to retrace back towards 1.1670 – 1.1620 regions before rebounding higher.

GBPUSD slams into 1.2900

The technical picture on the GBPUSD is bullish. A solid daily close above 1.2900 could open the gates towards 1.3000. Alternatively, a technical correction from the 1.2900 resistance is seen triggering a decline back towards 1.2813 and 1.2700, respectively.

Gold remains the star of the show

Gold rallied a fresh all-time high above $1980 on Tuesday before tumbling back below $1950 as investors engaged in a bout of profit taking.

The precious metal has gained almost 10% since the start of Q3 and is up over 27% year-to-date! While the medium to longer-term outlook for Gold remains tilted to the upside, losses could be witnessed in the short term amid profit taking and price action.

Looking at the technical picture, a close below the $1932 level could trigger a decline back towards $1905.



Dollar jumps, gold slumps, stocks nervous
Dollar jumps, gold slumps, stocks nervous

Worries that the US consumer is rolling over were dealt a major blow yesterday after the nation’s retail sales for August overpowered some gloomy forecasts. The retail sales...

17 Sep 2021

Energy is the play: how we get to $100 crude
Energy is the play: how we get to $100 crude

Natural gas futures in Europe and the UK are flying, while our natural gas (NG) CFD (the underlying is traded on the NYMEX) pushed over $5.60 and into 7-year highs...

16 Sep 2021

Are investors sleeping on systematic risk in China?
Are investors sleeping on systematic risk in China?

It’s time to talk about China. The situation is getting dicier as the nation’s second-largest property developer - Evergrande - is on the verge of default. Trading in the company...

16 Sep 2021

Sentiment sours as the S&P 500 tests key support
Sentiment sours as the S&P 500 tests key support

We head to quadruple witching in the US on Friday and notably options expiration (OPEX), and the weakness we see time and again in the week before seems...

15 Sep 2021

Dollar unscathed by soft inflation, equities resume slide
Dollar unscathed by soft inflation, equities resume slide

Dollar takes little damage despite signs US inflation has peaked - Wall Street resumes selloff - all eyes on China contagion risks - Canadian data coming up ahead of elections, gold wakes up...

15 Sep 2021

US inflation under the microscope
US inflation under the microscope

With the Fed having almost locked in a November taper announcement, the question now is whether Chairman Powell will use next week’s policy meeting to give the markets...

14 Sep 2021

Forex Forecasts

OctaFX information and reviews
HotForex information and reviews
XM information and reviews
FXCM information and reviews
Vantage FX information and reviews
Vantage FX
Moneta Markets information and reviews
Moneta Markets

© 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.