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Forex Today: Stocks Higher, U.S. Dollar Weakens

By Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

Stocks and risk assets have risen boosted by inflation comments from the Federal Reserve.

  • Global stock markets are mostly higher after FOMC Member Bullard said that inflation higher than 2% is fully expected, but can be expected to be a temporary phenomenon.
  • In the Forex market, gold and the euro are the strongest “currencies”, while the U.S. dollar is the weakest major currency.
  • Cryptocurrencies seem to be bottoming out after falling very sharply last week. It appears as if Bitcoin may have bottomed out just above $30k, while Ethereum is looking somewhat weaker, having made a new lower low below $2k.

  • The precious metal gold is still near its recent multi-month high at about $1890. However, bullish momentum seems to be fading, suggesting that it may be time for traders with long positions to tighten stops or otherwise consider a trade exit.
  • Last week saw a third consecutive weekly fall in global new confirmed coronavirus cases and deaths, suggesting that the current wave of the pandemic is starting to retreat. The effects of the vaccination programs in the most developed economies are now being felt.
  • Total confirmed new coronavirus cases worldwide stand at over 167.9 million with an average case fatality rate of 2.08%.
  • The fastest progression in terms of immunizing a population against the coronavirus in all but the smallest states has been in Israel, which has given at least one shot to 63% of its entire population followed by the U.K. at 56%. For most of the world, a vaccine still remains distant. However, the pace of vaccination in the European Union, which now has immunized 35% of its population, has picked up significantly. In the U.S., 49% of the population has been vaccinated.
  • The rate of new coronavirus infections appears to now be increasing most quickly in Afghanistan, Argentina, Bahrain, Bolivia, Brazil, Chile, Cuba, Dominican Republic, Malaysia, Paraguay, Sri Lanka, Taiwan, Trinidad, Uruguay, and Vietnam.
Adam Lemon
About Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

 

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