minus academy faq plus academy faq Check in circle Apple Android Home Magnifer Calculator Mail Email Facebook Twitter RSS Linkedin Linkedin hollower Headphones Wechats Instagram Line Mail 2 Phone Phone 2 Minus Plus Arrow right Arrow left (variant 2) Arrow right (variant 2) Brand logo Brand logo not filled Hamburger Flag of the Hong Kong Flag of the US/GB Flag of the US/GB Flag of the US/GB Flag of the China Flag of the China Flag of the China (traditional) Flag of the Taiwan Flag of the Hong Kong Flag of the Spain Flag of the Russia Flag of the France Flag of the German Flag of the Portugal Flag of the Italy Flag of the Poland Flag of the Czech Flag of the Hungary Flag of the Sweden Flag of the Bulgarian Flag of the Finland Flag of the Lithuania Flag of the Denmark Flag of the Croatia Flag of the Estonia Flag of the Norway Flag of the Romania Flag of the United Arab Emirates Flag of the United Arab Emirates Flag of the Indonesia Flag of the Malaysia Flag of the Korea Flag of the Korea Flag of the Samoa Flag of the Vietnam Flag of the Thailand Flag of the Japan Cross Cross large User Arrow down Arrow up Cube Info list Data comunication Clock Slash
Market Outlook
ZFX: Traders turn to be cautious amid correction markets - Zeal Capital Market

ZFX: Traders turn to be cautious amid correction markets

26-11-2020 03:51

These days, positive news of coronavirus vaccine development and the political certainty in the US have led to the optimism in global markets. However, after the recent surge of the stock markets due to the “hopes”, the momentum has slowed down. On Wednesday, Asian and European stocks were overall mixed, and the Wall Street was under correction.

With the US Thanksgiving holiday coming, it may be kind of a risk management or profit taking before such a long weekend, that traders need to adjust their portfolio.

ZFX analyst Jacob Leung said that, so far bullish sentiment is still maintained, as we all can see that positive news is dominated , hurting traditional safe-haven like gold. However, we need to be aware that it may be another choppy day as the liquidity may be lower throughout the holiday.

Oil market should be one of the focus recently. The coronavirus vaccine effectiveness, a weaker dollar, and the better economic figures are all driving such risk-on rally in oil prices. On the other hand, gold price tested $1800 level in previous sessions. Even gold price bounced back a bit on Wednesday, traders were still cautious. ZFX analyst Jacob Leung said that, there is obviously a resistance near $1820 level, triggering a fast retreat on Wednesday.

Today, stocks in Asia-Pacific were still mixed in early session. The minutes of the FOMC showed that the Fed members discussed ways to support the US economy through the monetary policy. However, the news has no change to the current momentum.

Overall, traders believe that the dollar will still be under pressure as the Fed will keep the rates near the historical low for years. With more positive expectations coming next year, riskier currencies may be boosted by risk-on sentiment.

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.