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Hello everyone, today Avatrade Aihua Foreign Exchange will bring you "[Aihua Foreign Exchange Official Website]: The US dollar index continues to fall, and concerns about economic recession continue to dominate the market." Hope it will be helpful to you! Original content is as follows:
In the European session on Tuesday, March 11, concerns over the U.S. recession and its potential activity on the global economic outlook triggered a sell-off in major stock indexes early this week. On Tuesday, the U.S. Economic Calendar will release the NFIB Business Optimism Index for February and the JOLTS job opening data for January. Meanwhile, investors will keep a close eye on political headlines and stock market trends.
On Monday, major Wall Street stock indexes opened and continued to move lower, as U.S. President Donald Trump admitted over the weekend that they would be in a "transition period" when asked whether his policy changes could lead to a recession. The Nasdaq aihuatrade.composite Index fell 3.8% on the first trading day of the week, the S&P 500 fell 2.7% and the Don Jones Industrial Average fell 2.08%. Meanwhile, the CBOE Volatility Index (VIX), known as the Wall Street Fear Indicator, rose about 20% on the day, reaching its highest level since early August. U.S. stock index futures rose slightly in early European trading on Tuesday.
The USD (USD) index closed basically flat on Monday as the risk-averse market atmosphere helped the USD remain flexible against other currencies. However, the decline in U.S. Treasury yields make it difficult for the dollar to accumulate strength. The benchmark 10-year Treasury yield remained below 4.2% in red early Tuesday after falling 2% on Monday, with the U.S. dollar index slightly lowering below 104.00.
Basic foreign exchange market trends:
Euro/USD is difficult to continue to improve its gains in the previous week and it closed flat on Monday. The pair gained traction in early European trading, trading above 1.0850.
The GBP/USD fell slightly on Monday, but successfully stabilized at 1 in early Tuesday.Nearly 2900.
Data from Japan showed that GDP grew by 2.2% in the fourth quarter, down from the 2.8% increase in the previous quarter. Japanese Economy Minister Ryosei Akazawa said on Tuesday that while policymakers remain cautious about external risks, the Japanese economy is expected to recover moderately. The U.S. dollar/yen fell slightly near 147.00 on Tuesday after falling about 0.5% on Monday.
Bulle market fundamentals:
Gold failed to benefit from the decline in U.S. Treasury yields, falling more than 0.5% on Monday. Gold remained at a consolidation phase around $2,900 in the morning of Europe.
Analysis of major currency trends:
Euro: The intraday bias of the euro/dollar first turns neutral and is currently down. Some consolidation will appear below the temporary top of 1.0887. The downside space should be curbed by the 55 4-hour moving average (now 1.0682) to bring another rebound. Above 1.0887, it will resume the rise from 1.0176 to 161.8%, with forecasts of 1.0176 to 1.0531 from 1.0358 to 1.0932. A resolute breakthrough will pave the way for the next step to return to the key resistance level of 1.1274.
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