Talking Points:
- The S&P 500 leads a broad rebound in risk assets, but is this trend or correction?
- USDollar has fallen for three consecutive weeks, marking the strongest downdraft since June 2013.
- USDJPY, GBPUSD, EURGBP, GBPNZD and AUDNZD may present asymmetrical fundamental and technical scenarios
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Have market conditions taken a systemic turn in favor of global speculation and financial stability? Many assets that are considered moored to speculative appetite have projected a strong, correlated advance. It is difficult to ignore the correlation across assets, but the motivations certainly draws questions. There seems no convincing evidence to suggest a revived global growth path, swell in projected investment returns or remedy to the unhealthy credit conditions across the globe. Sentiment can certainly navigate without these fundamental coordinates, but skepticism and volatility cast frequent shadows these days. Perhaps it is the absence of essential and tangible support that has lead to the focus on the Dollar and the rise of conspiracy theory surrounding a 'Shanghai Accord'. Speculative appetite grows increasingly stretched, but holiday trading conditions this week may delay the reckoning. With the S&P 500 shaping out a remarkably familiar pattern against a troubled fundamental backdrop, the Dollar suffering a remarkable loss and speculative interests realigned; we look at what the market faces in this weekend Trading Video.
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