Forex Analysis

Concerns of the rising bond yields! Cautious sentiment arises

Concerns of the rising bond yields! Cautious sentiment arises

The benchmark 10-year Treasury yield jumped to 1.39% above, another new high since Feb 2020. ZFX analyst Jacob Leung said that, again it would be a “warning”. High yields in long terms mean less “easy borrowing” and of course, it will attract the market money back to the bond markets from equities.

Daily NAS100 & EUR/USD technical analysis on February 10

Daily NAS100 & EUR/USD technical analysis on February 10

As investors’ expectations of the US government’s relief measures become stronger, the market sentiment is also optimistic. In addition, the average daily confirmed cases of COVID-19 in the United States has dropped by 36% from the level two weeks ago, and the hospitalization rate has also fallen from the previous peak, indicating that the U.S. epidemic is gradually under control and the stock market has therefore performed strongly.

Euro selloff supported safe-haven dollar amid positive sentiment

Euro selloff supported safe-haven dollar amid positive sentiment

Despite a bounce-back session, dollar maintains at a relative high level, that dollar index is hovering near a seven-week high on Tuesday. This safe-haven is benefited from a euro selloff overnight. One of the reasons is that lockdowns over those European countries are proved to hurt the economy, showing in the Germany retailing figures of Dec.

Forex Analysis | ZFX Market Outlook

ZFX: Markets were mixed amid the US stimulus bill

Overall, the risk appetite from the $900 billion of the coronavirus stimulus bill was overshadowed. In other words, it may be a typical “buy the rumor sell the news” as such “bullish” has been “priced in”. The dollar, which is deemed as the only “relative” safe haven, may go further stronger if the uncertainties remain.

歐元兌美元(EURUSD)/黃金走勢分析及操作建議 (2月18日)|ZFX 技術分析

ZFX: Pound is heading for a delayed breakthrough amid Brexit deal uncertainty

However, what is doubtful to the investors is that the deadline of the negotiations between the UK and EU has been postponed again and again. Both sides decided to continue the negotiation for the Brexit agreement on Sunday, causing a gapping up of the Pound this week. They agreed to put last every effort to reach the deal. So now, the investment market is again optimistic that an agreement of Brexit can be made finally within this week.

Forex Analysis | ZFX Market Outlook

ZFX: Markets boosted by hopes! Risk-on sentiment maintained?

Riskier currencies gained on Tuesday as investors are now rebalancing their portfolio after the rebound of the dollar. ZFX analyst Jacob Leung said that, the economic data in the US was just favorable the greenback in a very short term, based on the economic recovery prospective. However, after digesting the news all around, positive sentiment hurts the safe-haven dollar.

Forex Analysis | ZFX Market Outlook

ZFX: Traders are still betting on Sterling amid the doubtful UK-EU negotiations

For the investment market, traders are a bit positive towards such a big uncertainty, expecting the good side. The UK and the EU emphasized that the negotiations are making progress, but in fact, according to various source, the officials inside the EU are holding a tough attitude towards the negotiations, especially from the two big countries, Germany and France. Those voices were “no agreement may be better than a bad agreement.” So far, the latest news increased the worries as no consensus is made from both sides. German Chancellor Angela Merkel has warned that the EU must prepare for Brexit without a deal.