Last week the risk currencies enjoyed a great soar, but the investors now has walked out from the exciting mood. Investors are happy with the good news from the Europe. And on Friday the nonfarm payrolls are better, furthermore, the US November employments adds 120 thousands, at the same time the unemployment rate
downgrades to 8.6%. And the force of buying in the market is still enforceable. Though before this the investors sold because of the uneasy mood, the risk currencies briefly had a decline after a shooting up. But after a slight volatility, investors rebuilt the confidence and the long gained the force again. Now the risk currencies again are posing us a potential shooting up. By far, from the actions of different countries, the current situation is the same as the one that appeared when it was 2008 financial crisis the joint action in the world was taken. The risk averse will rise with the gradual advance of ease. The market will continue on Christmas Day. On the other hand, the investors have learned that the outlook of US debt issue is that negative. The short term has a slight rally, and the bonds appear a break. And if the price of bonds continues to go down, we can conclude that the funds are injected into the stocks and the risk assets. In short term, the better nonfarm payrolls signal us a potentially positive outlook of US economy recovery. And in the mid-term, the concerns over the outlook of global economy are erased, in the aftermarket the risk appetite will dominate the market. Furthermore we can see that risk currencies are accumulating the momentum. Over the last month of this year, risk currencies will have a stronger price action on the back of global saving the market and the short-term has digested the upper pressure.
USD INDEX: in the short term index has gained the support around MA20 (yellow). Generally speaking the index has the possibility of being the double heads. And in the aftermarket the pair can breaks down 78, a wider correction may have. By far the greenback’s weak stance is obvious. Resistance: 78.77, support: 77.50.
IKON analyst Zheng Nan
