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Forex Today: US dollar up, stocks down

Forex Today: US dollar up, stocks down

Solid risk-off sentiment continues to dominate the markets, with the US dollar continuing to advance against the yen and European currencies, while most equity markets continue to trade lower.

➡️ Risk appetite continues to be low, with stock markets trading lower almost everywhere. The Korean indices  KOSPI  and Chinese HSI are reaching new multi-year lows, while US indices are close to major collapses. However,  the NASDASQ 100 technology index  saw the main support at 14657 continue to hold.

➡️ In the Forex market, the US dollar is the strongest major currency, with  the USD/JPY currency pair  in focus as it rises to new 11-month high with Bank of Japan openly threatening intervention but failing to take any concrete action. Japanese Finance Minister Suzuki said a few hours ago that he will "take appropriate measures against rapid Forex movements." The US dollar also made long-term highs against the European currencies EUR, GBP and CHF with a very clear directional trend. Trend traders in the Forex market will be more interested in being Long USD/JPY and Short on  EUR/USD  as these are the two major dollar pairs that historically tend to trend most reliably.

➡️ Most commodities are trading lower in the current risk-off environment, with  gold, silver and crude oil  all down yesterday. Some soft commodities are mostly holding value, but none are reaching new highs.

➡️ Yesterday's release of IFO data on the German economic climate came as expected.

➡️ Consumer confidence data from the US CB will be released later today. It is expected to show a reading of 105.5.

 

Credit by DailyForex.com

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