Forex Today: Dollar, Yen Start Week on Back Foot

Adam Lemon

Risk assets are beginning to bounce back after getting hit strongly at the end of last week.

 

  1. Risky assets like stocks and cryptocurrencies are well off their recent highs, which in many cases are all-time highs. However, this week so far is showing a recovery in riskier assets.
  2. In the Forex market, the Japanese yen is the weakest currency, followed by the U.S. dollar. Precious metals and the Australian dollar are relatively strong.
  3. It is likely to be a relatively quiet day in the Forex market, in the absence of any major scheduled economic data.
  4. Global coronavirus deaths have fallen sharply over the past five weeks to reach a level 25% lower than the peak.
  5. Total confirmed new coronavirus cases worldwide stand at over 114.7 million with an average case fatality rate of 2.22%. The numbers of confirmed new cases and deaths globally have been falling strongly since their peak in early January, so there are signs the current heavy global wave may have peaked.
  6. The fastest progression in terms of immunizing a population against the coronavirus has been in Israel, which has already administered a first shot of the Pfizer vaccine to 51% of its entire population and a second dose to 36% (which includes more than 80% of over-40s). The U.A.E. ranks second, having now given 61 vaccines per 100 of its population. For most of the world, a vaccine remains distant. Progress remains slow in the hard-hit European Union with only one member state (Denmark) having given more than 10 shots per 100 people.
  7. The rate of new coronavirus infections appears to now be increasing most quickly in Austria, Brazil, Cameroon, Chile, Cyprus, Czech Republic, Ecuador, Estonia, Ethiopia, Finland, Germany, Greece, Hungary, Italy, Kenya, Kuwait, Lebanon, Lithuania, Malta, Moldova, Montenegro, Netherlands, North Macedonia, Norway, Paraguay, Philippines, Poland, Romania, Senegal, Serbia, Slovakia, Somalia, Ukraine, Uruguay.
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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