Global assets have attempted to rebound from a tremendous fall on Monday, but I still doubt how long the improved sentiment will last. This is because countries are still reporting more fresh cases of the virus, meaning for investors that concerns will remain over a prolonged economic fallout.
It would not surprise if UK, European and even US stock markets moved towards negative territory at some point before Tuesday trading concludes.
Away from world stock markets, FX and currencies are still finding volatility. Eyes remain on the USD that is slowly making a comeback and as Italy becomes a new epicenter of virus concerns, investors globally are starting to withdrawal profits from recent EURUSD positions. Should the US Administration, as expected announce fiscal measures to help the US economy combat the virus impact this can provide the USD with a further lift as it remains on a journey of recovery.
EURUSD, USDJPY and Gold are assets to keep an eye on should the USD attempt a comeback.
Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.