Forex Today: U.S. Dollar Continues to Advance

Adam Lemon

Risk assets are again looking shaky as money flows into the greenback.

 

  • Risky assets like stocks and cryptocurrencies remain well off their recent highs, which in many cases were all-time highs. However, some stock market indices recovered firmly yesterday, notably the S&P 500 Index in the U.S.
  • In the Forex market, the Japanese yen and the euro are the weakest currencies, while the U.S. dollar is strong.
  • The USD/JPY currency pair has advanced to make a new multi-month high, with odds in favor of further advances over the coming days.
  • Precious metals are weak, with gold trading at a 6-month low in USD terms.
  • The Reserve Bank of Australia’s Rate Statement confirmed that its interest rate remains at the historic low of 0.10% and that other policy settings will remain unchanged. The Australian dollar barely reacted to the release.
  • During the forthcoming Asian session, there will be a release of Australian GDP data.
  • Global coronavirus deaths have fallen sharply over the past five weeks to reach a level 25% lower than the peak.
  • Total confirmed new coronavirus cases worldwide stand at over 115 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 recent heavy global wave of the disease has peaked.
  • 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 37% (which includes more than 80% of over-40s). The U.A.E. ranks second, having fully vaccinated 22% 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.
  • The rate of new coronavirus infections appears to now be increasing most quickly in Chile, Cyprus, Estonia, Ethiopia, Finland, Hungary, Italy, Jamaica, Jordan, Kuwait, Lithuania, Malta, Mongolia, Netherlands, Norway, Philippines, Poland, Senegal, Somalia, and the Ukraine.
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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