Abstract：With a glance at July, it is found that some currencies of major industrial countries, which plummeted in the first half of 2020, have rallied in different degrees. Among them, both EUR and AUD have turned their six-month negative inflation into positive one.
With a glance at July, it is found that some currencies of major industrial countries, which plummeted in the first half of 2020, have rallied in different degrees. Among them, both EUR and AUD have turned their six-month negative inflation into positive one. The main reason is the boom in global stock markets arising from unprecedented quantitative easing implemented by central banks worldwide since March. This forces USD, a currency tending opposite against U.S. stocks, to constantly decline, providing chances for weak currencies to rebound at different levels.
From this January till now, only CHF and JPY crowned winners for the whole journey. As of July 27, SEK has become the best performer, with an increase of 5.9%; followed by CHF, rising by 5.1%; while JPY has ranked sixth, with a gain of 2.3%. Under the premise that USD will stay weak in the short term, I will expect a strong CHF with constant buoyancy in the future forex market. CHF is the most stable one for me because there are latent risks in EUR, GBP and the commodity currencies of AUD, NZD and CAD .
With a glance at July, it is found that some currencies of major industrial countries, which plummeted in the first half of 2020, have rallied in different degrees. Among them, both EUR and AUD have turned their six-month negative inflation into positive one. The main reason is the boom in global stock markets arising from unprecedented quantitative easing implemented by central banks worldwide since March. This forces USD, a currency tending opposite against U.S. stocks, to constantly decline, providing chances for weak currencies to rebound at different levels.
From this January till now, only CHF and JPY crowned winners for the whole journey. As of July 27, SEK has become the best performer, with an increase of 5.9%; followed by CHF, rising by 5.1%; while JPY has ranked sixth, with a gain of 2.3%. Under the premise that USD will stay weak in the short term, I will expect a strong CHF with constant buoyancy in the future forex market. CHF is the most stable one for me because there are latent risks in EUR, GBP and the commodity currencies of AUD, NZD and CAD .
USD and JPY can play the role of safe haven only when stock markets suffer from sharp loss. Currently, stock markets stay uptrend despite of the global tension. Thus, investments may flow from U.S. to Switzerland for safe haven, encouraging more CHF purchases. In view of this, CHF is possible to achieve the 2015 high of 0.9071 before adjustment. But even it is adjusted, I hold that CHF will keep climbing to another high of 0.8700 in the second half of the year.
Finally, we should pay attention to DXY as well. On the one hand, it has been in highly oversold territory; on the other hand, it may see a retaliatory rebound if the risk hedging of USD takes effect again due to the slump in global stock markets arising from tension.
[About The Author]
Since 1987, Jasper Lo has been engaged in the financial industry
(forex, futures and gold) for more than 32 years and holds forex R.O.,
securities and futures broker licenses. Mr Lo is an expert in trading
forex, precious metals and commodity futures and an basic and technical
analyst.
Over the years, Mr Lo won many individual and team sales champion
awards, as well as outstanding employee awards. He was invited, as a
guest mentor, to the University of Hong Kong, Guangdong Ocean University
and Guangzhou Jinan University. And he was also appointed as the chief
training consultant by Hantang Securities and Dongguan Securities in
China.
Mr Los experience as guest of honor invited by media including Chinese and English newspapers and columnist:
-Guest of honor invited by TVB New Channels such as Finance Channel, Forex Focus, Global Watch
-Guest of honor invited by Now Finance Channel - Forex Reports
-Guest of honor invited by i-CABLE Finance Info Channel - Forex Opportunities
-Guest of honor invited by ViuTV - Investor Smarter Group
-Columnist of Finance and Forex Market of Ming Pao
-Presenter of Finance and Forex Forecast of Ming Pao
-Presenter of Investment 36 Stratagem and Technical Analysis in 1 Min of Ming Bao Finance
-Appointed lecturer of Ming Pao Investment Seminar and Paid Course
-Author of the best seller Investment 36 Stratagem
-Columnist of Forex Expert, Forex Analyst, Marathon Weekly of ET Net
-Guest of honor of Open Good Morning of ET Net
-Guest of honor of Metro Finance Channel - Market Opening, Instant
Market Fighting, Guangdong-Hong Kong Finance, Finances Power, Market
Analysis
-Guest of honor of New Era of Investment of RTHK
-Columnist of Capital Commodities of Capital Weekly
-Guest Presenter of Wang Guanyi Online Finance Channel - Fund and Commercial Bond
-Columnist of Wealthub Finance and Investment Smart Platform of Enrich Culture
-Guest presenter of Weekly Investment in the World of Enrich Culture
Flash
Event! Download WikiFX App now and sign up, youre gonna get a 6-month
WikiFX VIP membership worth of US$9 and the latest WikiFX global
e-Magazine for free. Contact support@wikifx.com with title [For
Download Rewards+ your wikifx ID]. We will reply you within 3 days.
WikiFX,
a third-party forex broker inquiry platform, has collected the
information of 19,000+ forex brokers, 30 regulators, and helped victims
recover over 300,000,000.00 USD. WikiFX App provides functions like
forex brokers inquiry, calender, forex news express, calculator and
other trading tools to help you get trading done with ease.
Forex
brokers inquiry: in order to create a safe forex trading environment,
WikiFX offers you two methods of checking the compliance of forex
brokers, online checking and offline investigation report. WikiFX has an
independent inspection team, conducting on-spot visit to brokers
offices to identify they are trustworthy or not.
Forex calender: the financial events which may affect forex trading
Forex news express: providing you the latest info anytime and anywhere
Forex
forum: tons of posts by WikiFX users, containing technical analysis,
industry discussion, fraud brokers exposure; Users can exchange their
thoughts here freely.
