Forex Today: Stocks Higher on China, US Reassurance

Adam Lemon

Stocks trade higher globally on improving risk sentiment.

  • Global stock markets are trading higher since this week’s open, with Asian stocks finally bouncing back after a long period of underperforming US indices. The US S&P 500 Index is close to reaching its record high made last week during off-hours trading, suggesting higher prices are likely there over the coming days. Analysts attribute improved sentiment to President Biden progressing in the House of Congress with his infrastructure plan in the US and reassurance from the Chinese government over market regulation, though it is not clear how accurate an attribution that is.
  • After making a multi-month high above $40k, Bitcoin has dipped to trade below that round number again.
  • In the Forex market, the euro and British pound seem to be showing the greatest strength today, while the US dollar is the weakest major currency. The U.S. Dollar Index remains in a valid long-term bullish trend, but is currently showing momentum in the opposite direction.
  • Last week saw a sixth consecutive weekly rise in global new confirmed coronavirus cases, suggesting that the pandemic is advancing again due to the spread of the more highly infectious Delta (Indian) variant, which vaccines are clearly less effective against at least in terms of preventing infection. New data from Israel suggests the effectiveness of vaccines may drop greatly after only a few months, but British data contradicts such strong findings. Israel has become the first country to begin offering a third vaccine dose, to over 60s.
  • It is estimated that 14.6% of the world’s population has been fully innoculated against the novel coronavirus.
  • Total confirmed new coronavirus cases worldwide stand at over 199 million with an average case fatality rate of 2.13%.
  • The rate of new coronavirus infections appears to now be increasing most quickly in Algeria, Australia, Bahamas, Bangladesh, Cuba, Fiji, Finland, France, Georgia, Greece, Guatemala, Iceland, Iran, Iraq, Israel, Jamaica, Japan, Kenya, Laos, Lebanon, Malaysia, Morocco, Nepal, Nigeria, Norway, Philippines, Sri Lanka, the U.S. 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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