You are here: Home > articles > Forex > FxPro: Growing demand for safe currencies brings stock markets weakening to a new stage
FxPro: Growing demand for safe currencies brings stock markets weakening to a new stage
October 26, 2018 7:50 amVideo
Latest News
- Forecast for EUR/USD on April 16, 2024 April 16, 2024
- Forecast for GBP/USD on April 16, 2024 April 16, 2024
- Forecast for AUD/USD on April 16, 2024 April 16, 2024
- Outlook for GBP/USD on April 16. Pound awaits inflation data April 16, 2024
- Outlook for EUR/USD on April 16. Another boring Monday April 16, 2024
- The euro hardly has a chance to rise April 16, 2024
- Trading Signals for GOLD (XAU/USD) for April 15-17, 2024: buy above $2,328 (200 EMA – 5/8 Murray) April 15, 2024
- Video market update for April 15, 2024 April 15, 2024
- Trading Signals for GBP/USD for April 15-17, 2024: buy above 1.2450 (21 SMA – 0/8 Murray) April 15, 2024
- The dollar has not reached its potential April 15, 2024
- Analysis of GBP/USD. April 15th. Retail sales in the USA allow the dollar to continue rising April 15, 2024
- China’s Q1 GDP growth next on the Asian calendar – Preview April 15, 2024
- Technical Analysis – Goldman Sachs stock gains on strong earnings April 15, 2024
- Trading Signals for ETH/USD (Ethereum) for April 15-17, 2024: buy above $3,125 (200 EMA – 2/8 Murray) April 15, 2024
- Analysis for EUR/USD on April 15th. Monday – a tough day for the euro April 15, 2024
- GBP/USD: trading plan for the US session on April 15th (analysis of morning deals) April 15, 2024
- EUR/USD: trading plan for the US session on April 15th (analysis of morning deals). Euro is at an impasse April 15, 2024
- GBP/USD: Will sterling hold steady against dollar? April 15, 2024
- Technical Analysis – USDJPY rallies to another fresh 34-year high April 15, 2024
- Will Netflix earnings take the share price closer to its record highs? – Stock Markets April 15, 2024
On stock markets, the sale of risky assets continues. S&P500 added 1.9% on Thursday, but the index futures eke out, returning to the area of lows from May. Japanese Nikkei225 loses 2% this morning, bringing the losses from the beginning of the month to 13.5%. Heng Seng fell under the 25000 mark, from which the index bounced earlier in October. The reversal to the decline began four weeks ago and is only gaining momentum as a snowball.
The fact that the foreign exchange market has joined the flight into reliable assets is alarming. This is a sign that the current sale has gone beyond the profits’ fixation on the stock markets and undermines confidence in future prospects.
Dollar index DXY rose to 96.40 in the reach of the peak values of August of 96.80. The EURUSD pair was trading at 1.1360, remaining under the pressure due to tension around Italy. Press conference of ECB President Draghi failed to weaken.
Although the head of the ECB is confident that the Italian Government and the European Commission would find a compromise and the current risks are not the reason to change the collapsing QE plans. Yet the euro was under pressure in global markets. Mario Draghi called the fragile monetary union, which returned the single currency to the trend of the decline that prevailed last month.
The Australian dollar has updated its 2016’s lows as a trend that has been observed from January. This Aussie’s weakening is an additional evidence of fears around the prospects of the world economy, as Australia is a major exporter of raw materials and its currency is seriously affected by global trends in demand for metals and coal.
Related Posts: