Forex Today: U.S. Stock Market Has an Up Day

Adam Lemon

Markets remain shaky over resurgent coronavirus and U.S. stimulus fears

  • Stock markets are mixed, although the U.S. S&P 500 Index rose yesterday after briefly marking a 10% decline from its all-time high earlier this week.
  • Technically, it still appears the recent U.S. stock market selloff was a natural correction and not a significant trend change. It seems somewhat likely the recovery will eventually continue.
  • The U.S. Dollar is the strongest major currency, as markets continue to be dominated by risk-off sentiment. The British Pound, Euro, and Australian Dollar are the weakest major currencies. Precious metals are also weak, especially silver.
  • The GBP/USD currency pair reached a multi-month low price yesterday at 1.2710 and looks likely to fall further.
  • The New Zealand Dollar has gained following the Reserve Bank of New Zealand’s monthly input which ruled out any further quantitative easing as well as leaving interest rates unchanged.
  • Today will bring French and German business sentiment data, as well as seeing the Chair of the U.S. Federal Reserve testify before Congress.

  • Coronavirus daily global death tolls have been falling slightly for almost 2 months, with deaths in Latin America and the Caribbean falling to 36% of the global daily total, well exceeding those in both India (26%), the U.S.A. (15%), and Europe (approx. 8%). The number of new cases has been rising quite strongly in the European Union and the U.K. with the latter introducing new restrictions aimed at curbing the spread.
  • Total confirmed new coronavirus cases stand at over 31.5 million with an average case fatality rate of 3.08%. Global mortality over recent weeks has been lower than it was during the first peak in April.
  • India has more than 5.5 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 1,000 deaths reported yesterday.
  • The rate of new coronavirus infections appears to now be increasing most quickly in Andorra, Armenia, Austria, Belarus, Belgium, Burkina Faso, Burma, Canada, Costa Rica, Czech Republic, Denmark, El Salvador, Estonia, Finland, France, Georgia, Greece, Hungary, Indonesia, Iran, Ireland, Israel, Italy, Jamaica, Jordan, Lebanon, Lithuania, Luxembourg, Malaysia, Montenegro, Morocco, Nepal, Netherlands, Oman, Poland, Portugal, Russia, Slovakia, Slovenia, Spain, Tunisia, U.A.E., Ukraine, the U.K., the U.S.A., and Uzbekistan.  
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.
Learn more from Adam in his free lessons at FX Academy

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