Sentiment deteriorated on Tuesday as investors started to question the benefits of the weekend trade truce between USA and China and stocks fell, along with JPY cross. US bond yields also moved sharply lower, while the short-term part of the yield curve is already inverted, implying a possible recession over the next quarters.
The greenback was losing again, undermined by the falling yields and the dollar index decline below the important uptrend line, cancelling the current bullish view. The next target for the dollar index could be at 95.50, where previous strong demand zone is converged with the 100-day moving average.
Gold managed to rally again and pushed above the important 1,240 USD handle, while bulls are now fighting for previous highs 1,242 USD. If the price moves beyond this point, gold could jump toward the 200-day moving average slightly below 1,260 USD. Oil also moved higher on Tuesday.
There are no more major data on the agenda today and therefore the current negative sentiment might persist throughout the day, with further losses on the US stock markets likely.
Analysis and opinions provided herein are intended solely for informational and educational purposes and don't represent a recommendation or an investment advice by TeleTrade. Indiscriminate reliance on illustrative or informational materials may lead to losses.
© 2000-2021. All rights reserved.
This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at firstname.lastname@example.org.