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Forex Today: Stocks, Risk Assets Higher on China & Rate Hopes

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 the risk-on mode that was cemented Friday by positive US economic data, as well as the continuing boom in the Chinese stock market.

   

  1. Stocks and risk assets in general are rising quite firmly today as the major Chinese stock market index the HSI continues to rise to reach a new 5-month high as China continues its post-zero covid reopening.
  2. The long-term bullish trend in precious metals continues, with the price of spot Gold rising to another 6-month high above $1879. The price of spot Silver is also bullish, but less so. Both Gold and are attractive to long-term trend traders in the long direction right now, as higher prices here are likely over the coming days. Gold often tends to rise when stock markets are bullish, as is the case right now.
  3. In the Forex market, we currently see more in-trend movement in the major currency pairs, especially in the EUR/USD currency pair and less drastically in the USD/JPY currency pair. The strong long-term technical trend against the US Dollar remains.  Risk-on sentiment is helping weaken the US Dollar, which is the weakest major currency, while the Australian Dollar is currently the strongest, putting the AUD/USD currency pair in focus.
  4. Daily new global coronavirus cases decreased last week for the third consecutive week.  
  5. It is estimated that 69.1% of the world’s population has received at least one dose of a coronavirus vaccination.
  6. Total confirmed new coronavirus cases worldwide stand at over 668.6 million with an average case fatality rate of 1.00%. 
  7. The rate of new coronavirus infections appears to now be significantly increasing only in China, the Philippines, and Taiwan 
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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