Stock Trade Opportunities based on USD dip


Despite the global stocks rose yesterday, the USD dip has impacted the stocks today. What stock trade opportunities should you be looking out for?

16 August AtoZForex — The US dollar declined against the Euro and the Yen, in a reaction to this market move the Global Stocks also faced a drop today. A contrast compared to yesterday, when the stocks around the world rose, which was led by the gains of the MSCI Emerging Markets Index.

Why did the USD broadly dipped on Tuesday?

After the report of Fed President John Williams was released, the US dollar dropped broadly today. The paper of Fed John Williams indicated that a likely increase of the Fed’s inflation target. This would provide more room for the Federal Reserve to maintain the rates lower for an extended period. Euro rose against USD by 0.5% at $1.1240, while the pound climbed 0.1% against the greenback.

USD dip presents stock trade opportunities

When assessing the Asian stocks, the Japanese shares dropped by 1.4%, as to the USD went down over 1% against the Yen. Analysts believe that no catalysts was behind the Yen’s appreciation. Nevertheless, the volume of stop loss orders and thin trading was remarkably high. Aside the Japanese shares, the Shanghai Composite Index fell by 0.5%, as there was a spark of investors selling their shares of insurance companies and banks.

S&P500

Moving along, in today’s early minutes of trading, the Stoxx Europe 600 fell by 0.6% on the back of falling auto shares and the downbeat Asian session. As for the S&P500, futures have indicated a 0.2% loss at the market opening. Despite, S&P 500, Nasdaq Composite Index and Dow Industrials, had record market closing on Monday.

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Pay attention to the fundamentals today!

Considering that the Inflation data of the US is planned for release today, the market will be closely watching this data later. According to our morning analysis, EURUSD will revisit the recent previous low at 1.1153 and possibly go further down at 1.1135, on the conditions that the CPI results meet or exceed expectation. The data is forecasted to come in flat at 0.0%.

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