xysoom
Matrosen-Obergefreiter
Joined: 26 May 2020
Location: China
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Posts: 64
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| Posted: 25 July 2020 at 10:17 | IP Logged
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US Dollar, Gold, Silver Price Analysis: Cross Asset
Correlation
As liquidity stemming from monetary and fiscal policy
remains rife, cross-asset correlations are elevated, most
notably this has been evidenced by the continued strong
relationship between equity and FX markets. As market
volatility drifts lower, high beta currencies have taken
its cue from the pick-up in equities, which has largely
come to the detriment of the US Dollar. As we highlighted
yesterday, the negative relationship between the US
Dollar and stocks is its strongest in several years. Put
simply, the longer equity markets edge higher, the longer
the downtrend in the greenback.To get more news about
Binary option, you can visit wikifx news official
website.
Silver in the Roaring 20s, Gold looks to Record High
The precious metals complex has gone from strength to
strength with a significant rally observed in silver,
having hit $23 with gold eyeing $1900. While the weakness
in the greenback has aided the precious metals complex,
we still feel that the dominant driver has been the
plunge in real yields (now at 8yr lows), which is further
underscored by a firm relationship between real yields
and precious metals.
 29/637290494704348914/ART637290494704348914_925480.jpg-
wikifx_articlepic">
Source: DailyFX
Trend Continuation in Cross-Assets as Volatility
Drifts Lower
A relatively quiet affair for todays session given
the lack of key economic data. As such, while mounting
tensions between the US and China has prompted small
bouts of volatility, the absence of a material escalation
will likely see cross-assets maintaining its current
trend. Elsewhere, the EU and UK will provide an update on
the latest round of trade negotiations. However, with UK
press reports signalling that talks are at an impasse, we
expect the rhetoric to remain downbeat. Although, this
has yet to discourage GBP, which trades well against the
USD, having hovered above 1.27 and thus keeps resistance
at 1.2812 in focus. That said, we struggle to see GBP/USD
moving firmly above 1.2800 unless tangible progress in
trade talks have been made.
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Topic: US Dollar, Gold, Silver Price Analysis: C
