Market News
Bullish sentiment before New Year's Eve; dollar maintains slip

ZFX: Slightly bullish sentiment before New Year’s Eve; dollar maintains recent slip

31-12-2020 02:54

Overnight on Wall Street, the three major indexes closed higher, of which the Dow gained 0.24%, while the S&P and the Nasdaq were a bit struggling, up 0.13% and 0.15% respectively.

Traders now may be balancing their portfolio during the year-end period, making a lackluster trend, especially without main issues all over the markets.

But, the dollar was weak against other major currencies, that in general speaking, it hasn’t hurt the optimism around the markets. The euro, Aussie and Kiwi are trading at more than two-year highs against the greenback on Wednesday. The dollar index is now trading at 89.5 area, confirming a downward breakthrough of 90.

Obviously, investors are betting on the strong fiscal and continuous monetary support from the US while all the uncertainties around have been lowered, pushing the dollar index down to 90 level below.

Analysts believe that with the improving economic outlook, the Wall Street will keep trying to test record highs. Asset prices in 2021 would be likely bullish.

Senate Majority Leader Mitch McConnell disagrees the stimulus package regarding the direct payments to Americans from $600 to $2000, despite the request from President Trump. However, looking back to the trading sessions on Wednesday, investors are still expecting that the Congress will come over the issues.

Stocks in Asia-Pacific are mixed in early trade today, similar to Wednesday move, as investors may cash in on a recent rally, or as multiple markets in Asia-Pacific are set to close early for New Year’s Eve.

Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.