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

ZFX: Risk appetite is still dominating amid uncertainties

What is Market Liquidity in Forex? | Z Academy

On Monday, Asian stock markets are generally bullish cautiously, following a mixed trade last Friday in Wall Street. Investors are now digesting those positive news of vaccine, boosting the risk appetite of the financial market worldwide. The approval of Pfizer Inc and BioNTech’s Covid-19 vaccine in the US sparked optimism of a faster economic recovery.

 

For the FX market, the Sterling is the focus on Monday early session. The UK and the EU further extend the deadline for the trade deal negotiations, driving the Sterling gapping up in the opening, rising to 1.3360 level against the dollar. Analysts believed that both sides are willing and able to reach the deal through further talks. However, some analysts also warned that, both sides are just repeatedly mentioning about their own concerns rather than narrowing their differences, meaning that the risk of no-deal Brexit is still high.

 

The dollar index is trading around 90.7 level in Asian session, near its 2 1/2-year low. This week, investors will monitor further hints from the FOMC, and now expecting the further purchasing of longer-term US treasuries by the Fed.

 

Also, the expectations of economic recovery due to the positive coronavirus vaccine news and the hope of a new round of the US stimulus bill are lifting the bullish sentiment, hurting the safe haven dollar, but pushing up those riskier assets.

 

While the low-rate dollar is under pressure, gold prices have lost the momentum as the rollout of vaccines. The spot gold is now entering into a ranging around $1830-1840, waiting for the final decision of the US fiscal and monetary stimulus.

 

On the other hand, oil prices are doing good recently, have rallied for six consecutive weeks. Weak dollar, OPEC+ decision and the global recovery hopes all together boost up the oil prices these days. But, some analysts remind that the current oil priced may have already priced in all the bullish factors in the market.

 

 

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.

Share

Share on facebook
Share on twitter
Share on linkedin

Tags