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Forex Today: Risk-Off Sentiment Dominates

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.

Markets continue in minor “risk-off” mode sending stock markets lower and the greenback higher.

  • Most stock markets have traded lower as markets focus on signs of slowing economic growth and looming QE tapering from the Federal Reserve. The Chinese market fell quite strongly during the first session of this week.

  • In the Forex market, the US dollar is clearly the strongest currency, while the commodity currencies (especially the CAD, AUD, and NZD) look weak. There are likely to be day and possibly swing trading opportunities in these currencies in the direction of the USD today.

  • Bitcoin and most other cryptocurrencies continue to look weak and heavy after their sharp, sudden falls last week. Trading cryptocurrencies short may be a profitable strategy this week.

  • There are no high-impact data releases scheduled today – due to this and the fact it is a Monday, price movement in the Forex market is likely to be slight today.

  • Last week saw the third consecutive weekly fall in global new confirmed coronavirus cases after over 2 months of weekly rises, suggesting the current wave driven by the delta variant may have peaked.

  • It is estimated that 41.8% of the world’s population has had at least one dose of a coronavirus vaccination.

  • Total confirmed new coronavirus cases worldwide stand at over 225.4 million with an average case fatality rate of 2.06%.

  • The rate of new coronavirus infections appears to now be increasing most quickly in Albania, Australia, Austria, Barbados, Belarus, Bosnia, Cambodia, Costa Rica, Croatia, Egypt, Latvia, Lithuania, Moldova, Philippines, Romania, Serbia, Singapore, Slovenia, and the U.K.

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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