What happened? It looks like the decline in EUR/CHF to 1…
Risk Off Mood Gains Momentum
2020-08-14 • Updated
Midday Market View
European stock markets traded lower Friday, with travel stocks weighing after Britain added more countries to its quarantine list while Chinese data suggested a slow economic recovery.
Midday Key Point
- Austria reports 282 new coronavirus cases, highest daily count since April.
- Eurozone Q2 GDP second reading comes at -12.1% vs -12.1% q/q prelim.
- Major currencies little changed even as stocks stay pressured on the session.
What happened? Japanese shares fell on Monday…
AUD/USD has been trying to break higher for an extended period but without any chance. From April until today, all rallies’ attempts have faded as shown on the daily chart.
The past several weeks have been a real triumph for the bulls in the oil market. The Brent spot price grew by 8.5% during the last month.
Gold prices are rising for three consecutive days ahead of the Federal Reserve (Fed) interest rate decision, which is expected to remain unchanged due to declining inflation and a positive economic outlook. Investors are keen on the Fed's interest rate guidance, fearing a hawkish stance that could trigger market risk aversion.
Amid concerns of a Chinese economic slowdown, reports of declining investment often overlook China's efficient investment strategy in emerging sectors for long-term growth. China has taken measures to stabilize foreign and private sector investments, like reducing the reserve requirement ratio to boost investor confidence.