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 Turkey Flag of the Japan Cross Cross large User Arrow down Arrow up Cube Info list Data comunication Clock Slash
Market Outlook
ZFX: Cash is King! Dollar bounced amid bearish markets - Zeal Capital Market

ZFX: Cash is King! Dollar bounced amid bearish markets

09-09-2020 07:06

Asian stock markets generally declined on Wednesday after Wall Street’s tumble overnight. Stepping into the European trading session, stocks are expected to open lower, as investors are worried the overvaluation of those tech stocks. The Nasdaq has dropped 10% over the last three trading days, which is a sign of entering into a correction.

“Cash is King” once again reflected the recent strength of the dollar. Dollar index has bounced around 2% from 91.75. Investors sold riskier assets in a such bearish condition, turning back to hold dollar, driven by risk aversion demand. The fears of “hard”Brexit pushed the Sterling to 1.29 level, dropping around 200 pips against dollar on Tuesday.

ZFX analyst Jacob Leung said that, the sell-off of tech stocks may just begin, and may further trigger market panic in coming weeks, especially if no good news arise. However, we can see market sentiment can change so fast.

On the other hand, oil prices dropped sharply. The market was panic after Saudi Arabia lowered its oil export prices, together with the fears of “hard” Brexit, and the escalating tensions between China and the US.

As the dollar strengthened, gold price once fell to a low that near $1900 despite risk aversion. However, the continuing sell-off pressure in the stock market spooked investors to seek safe-haven, gold price found support and eventually bounced back to $1930 level.

ZFX analyst Jacob Leung said that the moves imply the adjustment, with a high volatility, may continue in these days.

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.