ONLINE FOREX BROKER
2020-06-26 • Updated
The optimistic vibes of the end of May/beginning of June made investors lose interest in the USD. That made it lose value against risky currencies such as the MXN and the TRY. Eventually, the USD got back to power when the optimism got exhausted after the first week of June. Consequently, USD/MXN and USD/TRY started gaining value once again.
Currently, both currency pairs are at their respective tactical resistance levels: USD/MXN below 23.00 and USD/TRY at 6.85. Although trajectories are slightly different, the basic inner mechanisms of the market are the same and are dictated by the value of the USD almost irrespectively of the domestic policies in Mexico and Turkey. Still, we have to take into account that the Mexican central bank lowered its interest rate recently, while the Turkish financial authorities kept it steady.
Fundamentally, USD/MXN and USD/TRY will rise as long as the prevailing market sentiment is risk-off, just as it has been during the last three weeks. The fact that both currency pair are approaching their resistance levels and consolidating may be explained by the fact that there is actually only one serious fundamental impediment for risky moods to get back to the market: the resurgence of infections. In fact, rather, not the resurgence itself, as much as an emotional setback in the market caused by it. Even now, with infection numbers rising record high is some states, such as Texas, the market does not anonymously take that into decline: people still expect those infections to start rounding up soon, and at the same time many already lost their emotional sensitivity to the whole virus fear.
For this reason, there is a high likelihood that starting next week, the risk will be getting back, and the USD will be giving space to the MXN and TRY. That’s in the midterm, however, and just for a while. In addition to that, from purely technical perspective, both chart formations offer possibilities of a bullish outcome. That's why, watch for the signs of trend reversal or, alternatively, a new bullish wave.
In the long term, the USD will be gaining against both currencies as it strategically does against all weak currencies.
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The previous year 2022, was undoubtedly tumultuous for the stock markets, with several stocks plummeting across multiple industries. Analysts have blamed the hard times on inflation, hawkish federal reserve policies, an impending global recession, and the ongoing crisis in Ukraine. This year, however, we're beginning to see some recovery in the stock markets. This article will find a few stocks worth buying this year.
In a call scheduled for January 25, 00:30 am GMT+2, Microsoft will publish the company's earnings for the final quarter of 2022 and comment on the results, projections, and outlook for the nearest future of the company.
Let's dive into the world of gold. Currently, the price of gold, represented by XAUUSD, is stuck in indecision, hovering around the $1,975 mark. The market is anxiously awaiting two important factors: the release of the Federal Reserve's meeting minutes and the extension of the US debt ceiling.
Hey guys, this is the last full trading week in May, and many forward-looking individuals like myself are already preparing themselves to seize whatever opportunities June may have in store. On this note, I will review a few commodities that have satisfied my quest for swing-trading opportunities in the coming month. Follow me!
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