Stock markets are running mixed?
On Monday, stock markets in Asia-Pacific, especially HK HSI, were higher as the market sentiment is still positive towards President Joe Biden’s $1.9 trillion stimulus packages. However, European stocks are trading mixed as the counterparts in the US are just moving slightly, reflecting cautious views over the markets.
ZFX analyst Jacob Leung said that the struggling trend may be due to the severe coronavirus pandemic, dragging down part of the optimism.
Safe-haven seeking?
Over these days, the dollar tended to be weaker. The dollar index has slipped from around 91 to 90. On Monday, it bounced back a bit to 90.3 level, as the worries about the pandemic prompted investors to seek the safe-haven first.
Of course, some analysts believe that the weakness of the dollar could be long-term. The massive fiscal and supportive monetary policies would generate a persistent bearish outlook in the FX market over these years – as widely expected.
ZFX analyst Jacob Leung said that the risk-off mode is not really clear. When we take a look of gold price and Bitcoin price trends, the recent moves haven’t showed any signs of that.
Ranging market approach?
Last week till now, even there were quite a lot of news from economic data, Yellen’s speech, corporate earnings and effectiveness of Covid-19 vaccine, the markets seem like just ranging.
ZFX analyst Jacob Leung said that due to those uncertainties in the market, it may be better to try ranging trading strategies. Before any breakouts, short term trades with closer targets would be more appropriate these days.
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