The Dow Jones and the US Dollar, Analysis and News
- Ro-ro Flow Drives the Short Term Price Action
- Eyes on China, the Tensions of the Market Optimism Remains
Ro-ro Flow Drives the Short Term Price Action
Short-term cash flows across the currency space have been dominated by ro-ro (Risk-On/risk-Off”), as – FX correlations with the equity markets increase strongly. US equity futures have seen a strong rebound since the March lows, the S&P 500 is within a close proximity to the 3000 level, while the Dow Jones has been around the post-crash peaks. That said, we don’t understand a word EQUIVALENT has been one of the key factors that explain the decline of the US Dollar throughout last week, with the chart below, highlighting an increasingly positive correlation between the USD and the Dow Jones.
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Figure 1. The 30-Day Correlation-Log Between the U.S. Dollar and the Dow Jones
Source: DailyFX, Refinitiv
Eyes on China, the Tensions of the Market Optimism Remains
Vaccine hopes Franco-German, in the recovery plan, a proposal, and a Federal reserve that has pledged to provide additional liquidity has been of tasks, some of the shine off of the safe haven of the US Dollar. However, the experts of optimism of the market are emerging, with tensions between the us and China are on the rise. Yesterday, the Senate voted overwhelmingly in favour of a bill that places the Chinese companies listed in the united states under a more thorough examination, which, in turn, increases the likelihood that we will see a retaliation of China Focus on USD/CNH to the Escalation of Commerce of the Voltage of the Signal”).
The difference, while the Franco-German aid project marks an important step forward, concerns are raised with the fact that it must be a unanimous vote in favor, or, what is there in the the question arises, as the fiscal hawks, such as the netherlands and Austria-will-need-to-be on board. Difficult to ask if the changes are not made. With this in mind, and given that a lot of bad news, apparently, the price, the market disappointment at the emergence of uncertainties (including the united states and China tensions) could see short-term bottom in the us Dollar, 99.00 is the key to hold recent range), coinciding with a possible summit on the stock markets.
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The Change in the
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Dow Jones Price Chart, The Time Frame Of
Prices in US Dollars Chart, Daily Time frame
— Written by Justin McQueen, a Market Analyst
Follow Justin on Twitter @JMcQueenFX