Market Outlook

Market Outlook | Daily Forex Technical Analysis & Forecast | ZFX

ZFX: Short covering under risk off sentiment

Last Friday, the three major Wall Street indexes bounced back by more than 1%, of which the Dow closed nearly 2% higher, after experiencing a sharp decline on Thursday. Stocks in Asian region were little changed in Monday morning session. Some investors believed that the markets were over-adjusted so that released buying interest at the low.

Market Outlook | Daily Forex Technical Analysis & Forecast | ZFX

ZFX: Markets fluctuate after Fed actions. Low rates for years?

On Wednesday, the Fed said that it would keep the interest rates near zero until the end of 2022 after the FOMC meeting. Even the Fed actually met expectations, investors feel gloomy after digesting the Fed actions, which likely indicated a pessimistic outlook of the US economy. Fed members projected that the US economy would shrink 6.5% this year and the unemployment rate would be 9.3% at the end of the year.

Market Outlook | Daily Forex Technical Analysis & Forecast | ZFX

ZFX: Signs of recovery? Risk-on trades dominate?

The Non-farm Payroll figures last Friday showed a surprising improvement in the labor market of the US. Risk appetite was further boosted by the hopes of global economy recovery, dragging down the safe-haven demand.

Market Outlook | Daily Forex Technical Analysis & Forecast | ZFX

ZFX: Not harsh? Markets optimism resumed after Trump’s response

Market sentiment was very cautious on Friday before Trump’s press conference. Investors were worried that the US would take aggressive measures against China, including economic sanctions. However, President Trump did not mention much that the traders feared. With lack of details, the Wall Street bounced back in the US late session, which the Dow edged lower, S&P 500 rose 0.48%, and the Nasdaq performed the best closing 1.29% higher.  

Market Outlook | Daily Forex Technical Analysis & Forecast | ZFX

ZFX: Trump’s power? propped up risk aversion

It is reported that President Trump will hold a press conference regarding “China” on Friday. Investors are worried the escalation of tension between China and the US, causing a sharp retreat in Wall Street, giving up all the gain of the day after the news. The Wall Street three major indexes all edged lower finally.

Market Outlook | Daily Forex Technical Analysis & Forecast | ZFX

ZFX: Recovery optimism overshadowed China-US tension

The three major Wall Street indexes rose on Tuesday as investors are betting on the reopening of the global economy. The US economic figures were generally better than expected, boosting optimism in the market. And, the news from coronavirus vaccine development was also positive to the sentiment. However, the risk appetite faded out on Wednesday Asian session. Investors are now closely monitoring the growing tension between China and the US.

Market Outlook | Daily Forex Technical Analysis & Forecast | ZFX

ZFX: Market sentiment was boosted? vaccine hopes again?

In the early session on Tuesday, the drop of the dollar and the rally of the stock market index futures of Europe and the US have implied the risk-on mode already. The vaccine news from Novavax, a vaccine development company of the US, was one of the factors. The company said  that it targets the first vaccine testing results in July.

Market Outlook | Daily Forex Technical Analysis & Forecast | ZFX

ZFX: Cautious sentiment fuels demand for safe-haven assets this week

The rising tension between China and the US would be the main theme in the financial market in the coming days. Investor sentiment is highly cautious. However, the stock markets were just mixed in Asian session on Monday. The move was not bad last Friday during US session, meaning that the sentiment was not that bearish due to the economies reopening worldwide.