Dollar Threatens Reversal Awaiting Stimulus, Nasdaq Leaves FOMO Rally Unclear

Dollar Threatens Reversal Awaiting Stimulus, Nasdaq Leaves FOMO Rally Unclear

Aug 01, 2020 (MENAFN via COMTEX) —

(MENAFN – DailyFX) Dollar, GBPUSD , AUDUSD , Nasdaq Talking Points:

The Nasdaq didn’t give a clear response following the release of most FAANG member’s earnings Thursday night, which leaves the drive on risk trends unclear for next week US stimulus is still up in the air as extraordinary unemployment benefit support expires, but US equities and the Dollar are ready to response Monday whether a solution is offered or not With a Friday rally, the Dollar keeps open the possibility of a correction – if properly supported – with EURUSD , AUDUSD and GBPUSD crosses that I’m watching specifically An Inconclusive View on Risk Trends Except for Volatility

There was an inordinate number of high profile events and themes competing for our attention this past week; but despite a fair number of surprises, none of these sparks took command of global risk trends. Through the final trading day of this past week, I was looking to the market to cast its die on whether fortune would favor the exceptional FAANG earnings (Facebook, Amazon, Apple and Google specifically) that reported Friday after the close or the reality of the troubled economic outlook. Friday’s price action was inconclusive on conviction. The Nasdaq 100 – a pacesetter in global markets these past years – ended the day with a measured gain founded on the opening gap and large lower wick. That is indecision personified and offers little carry over into next week. So, either FOMO reasserts itself, a new lightning rod takes control or the risk of retreat will grow quickly.

Chart of Nasdaq 100 Index with Nasdaq to VEU Ratio in Purple and Daily ‘Wicks’ (Daily)

Chart Created on Tradingview Platform

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