The new week kicked off in a risk-off environment as basically everything was sold-off – metals, commodities, indices, and higher-yielding currencies. Traders bought the USD and UST.However, EU traders seem to be buying the dip, and stocks are moving off the daily lows, so are precious metals. 

The EURUSD pair is trading below 1.22 and the USDJPY pair above 104, which could be important reversal thresholds. The dollar index moved above 90, and it is also breaking out from the medium-term falling wedge pattern, which is a bullish formation.

On the other hand, US yields are down today, with the 10-year yield dipping back to 1.1%. We will see if the recent breakout will hold as the US can’t really afford higher yields. 

Many EU countries are seeing a massive rise in the COVID cases, despite hard lockdowns. The new strain, which is said to be much more transmissible, is causing more and problems. 

Cases are also increasing globally, with mainland China seeing its biggest daily increase in more than five months.

Later in the day, the ECB’s governor Lagarde is due to speak, which might influence the EURUSD pair. 

Source: https://www.axiory.com/market-news/risk-off-session-in-place-on-monday

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Peter Bukov

Peter comes from a background in corporate finance which began in 2013 when he completed the Corporate Finance Program at the University of Economics in Bratislava. He’s been actively involved in the market sector since 2008 and got his hands-on experience in trading in 2011. His experience in finance and trading continues not only as a market analyst at Axiory Intelligence but also through his studies to obtain a degree in Capital Markets. The study is in line with MIFID II regulations and is under the supervision of the European Regulator ESMA, which strongly emphasizes ethics and morale in investing and working with a client.

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