Monday for the markets starts with concerns about the second wave of the epidemic in the world. Investors are afraid that the recent rally in the markets has gone too far and it happened in a very short period of time.
In general, any negative information sends quotes in the free fall, such as the news that the White House recorded cases of coronavirus. Therefore, profits from the last rally can be lost very quickly. Until the world gets used to living in a state of epidemic, markets will storm further. The DAX index is down 0.7%. After the S&P500 index fell at the beginning of trading, investors were able to buy it back. It is still impossible to take the level of 3000.
The Japanese Yen could not continue to strengthen itself. With the strengthening of the dollar on Monday, the USD/JPY rose sharply and touched a new two-week peak at 107.7. Optimistic sentiment in the Asian stock markets does not allow investors to go into safe currencies. The pair is likely to continue growing until the nearest support at 108.30.
In the markets, the correlation between risk assets and refuge assets is once again broken. With the growth of the stock market, the price of gold should theoretically fall, but this does not happen. Only the strengthening of the dollar makes gold yield to the price. So far, gold is almost at maximums and trades at $1700 per ounce. As long as gold is in value and will try to get more expensive.
Oil is approaching its key technical levels. The coming days will show if WTI oil is ready to change its trend and continue growing in price. The first important level will be $26.76 per barrel. If the price can pass it, it will open the way for $30. It is still difficult to predict whether the oil will be strong enough to recover so quickly.
What’s waiting for us today?
03.30 Business confidence index in Australia
14.30 US Consumer Price Index Baseline
15.00 Speech by FOMC member Bullard
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