Currency markets ending 2019 with a bang
Editor's Note: 2020 is expected to be another year of significant uncertainty and turmoil. But the question is what asset will emerge the victor when the dust settles from the global trade war, Brexit, recession threats, negative bond yields. It's a showdown of global proportions, so don't miss all our exclusive coverage on how these factors could impact your 2020 investment decisions.
(Kitco News) - Think it’s been a quiet, holiday trading period? Then examine the FOREX mkt.
A major feature in a generally quiet, holiday marketplace the past several days has been many currencies rallying significantly against the U.S. dollar, including the Swiss franc, Euro currency, Japanese yen, Canadian dollar and Australian dollar.
The U.S. dollar index hit a five-month low Tuesday and is poised to close at a technically bearish monthly low close today, on the last trading day of the month, which would suggest more downside price pressure for the greenback in early January, or longer.
The depreciating greenback is a bullish development for the raw commodity sector, including the precious metals, as most raw commodities are priced in U.S. dollars on the world market.
As trading progresses in early 2020, look for the currency markets to continue to be more active, which also means more volatility likely in other markets, too. That’s good news for all traders, because nobody likes dull, sideways markets.