Abstract:The China-US trade tensions that continue to escalate further affected the USD Index, which has been oversold and maintains a bullish outlook.
WikiFX News(6 June)-The China-US trade tensions that continue to escalate further affected the USD Index, which has been oversold and maintains a bullish outlook.
US President Donald Trump threatens to post new economic sanctions on China, which further aggravated the already tense relations between the two global powers. The trade relations between China and US will be a key factor influencing USD and risk asset markets in the upcoming weeks and months.
Several economic indicators recently released in succession by US implied the US economy is on a slow recovery. Though the Fed‘s massive stimulus helped to create a V-shape rebound of the US stock market, it’s expected that the overall economy will rally with a much slower speed. Previously, the US initial claims grew by 2.12 million while the adjusted GDP in Q2 shrank 5%, the worst in nearly a decade. Statistics also show that due to the lockdown measures during the pandemic, US savings reached a record 33%.
USDX continued to fall last week, currently at the lowest level since mid-March. If closing below the 200 Moving Average, there may be greater sell-off pressure. But as CCI suggest the USDX is seriously oversold, which can reduce its plummeting trend in the short term.
App Download:bit.ly/WIKIFX
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
As we head into the second quarter earnings report season, the U.S. equity market is poised to capture significant attention. Recent geopolitical events, particularly the unconfirmed reports of an explosion in Iran's third-largest city last Friday, have injected volatility into commodities prices and bolstered the appeal of safe-haven assets like the U.S. dollar and Japanese Yen.
The market was roiled by unconfirmed reports of explosions in Iran, Iraq, and Syria, adding to the already tense atmosphere following Iran's recent attack on Israel over the weekend. Anticipation of potential retaliation from Israel contributed to heightened nervousness in the markets throughout the week. Gold prices surged above the $2400 mark, while oil prices saw a gain of over 4% in the Asia opening session on Friday
The dollar was up on Tuesday morning in Asia. Meanwhile, the yen traded near a one-month low to the U.S. currency as uncertainty about the omicron COVID-19 variant was largely consigned to the background, and investors’ risk appetite improved.
The dollar rose on Thursday, hitting a 16-month high a day after the strongest U.S. inflation reading in more than three decades, while equities rebounded on expectations higher consumer prices will help corporate growth.