Forex Today: Stock Markets Lower

Risk-off sentiment driving markets again

  • Stock markets fell yesterday, with the S&P 500 Index closing down and the Nikkei 225 Index down by more than 1.5% near the Tokyo close.
  • Technically, it appears the recent U.S. stock market selloff is a natural correction and not a significant trend change. It seems somewhat likely the recovery will continue.
  • The Australian Dollar is the weakest major currency right now, while the Japanese Yen is the strongest.
  • The first U.S. presidential debate between President Trump and his challenger Joe Biden was held. The debate was seen as the angriest and chaotic of all time, with early polling seeming to indicate Biden narrowly came out ahead with watching voters.
  • WTI Crude Oil is testing near-term lows around $38.50 as global demand falls.

  • Coronavirus daily global death tolls have been rising slightly over the past 2 weeks, with deaths in Latin America and the Caribbean falling to 38% of the global daily total, well exceeding those in both India (approx. 20%), the U.S.A. (14%), and Europe (approx. 12%). The number of new cases has been rising quite strongly in the European Union and the U.K. with the Netherlands notably introducing new restrictions aimed at curbing the spread.
  • Total confirmed new coronavirus cases stand at over 33.6 million with an average case fatality rate of 3.00%. Global mortality over recent weeks has been lower than it was during the first peak in April.
  • India has more than 6 million confirmed coronavirus cases, more than any other nation except the U.S.A. India is now seeing more new deaths daily than any other country with over 1,150 deaths reported yesterday.
  • The rate of new coronavirus infections appears to now be increasing most quickly in Andorra, Argentina, Armenia, Belarus, Belgium, Belize, Bulgaria, Burma, Canada, Denmark, El Salvador, Estonia, Finland, France, Georgia, Germany, Hungary, Indonesia, Iran, Iraq, Ireland, Israel, Italy, Jordan, Latvia, Lebanon, Lithuania, Malaysia, Morocco, Nepal, Paraguay, Poland, Portugal, Romania, Russia, Slovakia, Slovenia, Spain, Tunisia, U.A.E., Ukraine, and the U.K.
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.