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Forex Today: Minor Risk Rally Fizzles Out

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.

Monday’s minor risk-on rally quietly fizzled out in a dull market.

  •  A small rally in stocks and other risks assets was seen yesterday but it quickly ended. Most risk assets are consolidating on low volume, and markets look likely to face quiet summer week.
  • The Forex market is currently seeing a weak selloff in the US Dollar, with the Canadian Dollar, helped by the rise in WTI Crude Oil, looking relatively strong. It should be noted this is a countertrend movement which is very prone to a sudden reversal.

  • The Japanese Yen continues to look relatively weak, as the USD/JPY currency pair advances again and begins to threaten its recent high.
  • There will be a release of US CB Consumer Confidence data later today.
  • Daily new coronavirus cases globally rose again last week, against the long-term trend.  It may be that the omicron subvariant BA5 will cause another significant wave.
  • It is estimated that 66.4% of the world’s population has received at least one dose of a coronavirus vaccination, while approximately 6.9% of the global population is confirmed to have contracted the virus at some time, although the true number is highly likely to be much larger.  
  • Total confirmed new coronavirus cases worldwide stand at over 549.8 million with an average case fatality rate of 1.16%.  
  • The rate of new coronavirus infections appears to now be significantly increasing in Austria, Kenya, France, Israel, Qatar, Bahrain, Cyprus, Germany, Greece, Guatemala, Italy, Lithuania, Malta, Mexico, Morocco, Singapore, and the UAE.  
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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