CommoditiesETFsForexMarket Review

With a crashing market, where does money tend to move?

The coronavirus or covid-19, as they are referring to now to soften the term, has shown it’s average trend, and while the media is reporting that the worst is over and the numbers are slowing, let’s not be fooled as the real numbers are likely not out and if China and Italy are a means for reference then taking Italy as an example of the next leg to come in the headlines, the US is 9 days behind Italy and the UK is 11 days behind, so looking at a potential time horizon for the next market moves could be simulated by this.

Now think: Why are all Ceo’s stepping down at such a crucial time?

Why now? Why collectively? What are the odds it would occur at the same time? Think, sinking ships?

With a crashing market, where does money tend to move?

Safe-haven assets 

If silver climbs and sustains a move above 17.60 we could see a strong surge in the demand to 25/ounce, silver is the poor man’s gold and will likely be the highest performer of the metals if the supply disruption comes to unfold 

So with falling equities and a rise in metals and other commodities what will this mean for forex?

This will largely depend on the bond prices, should they continue to rally this should indicate cuts in the interest rate and will also be likely to attempt boosting the economy after the fallout, so for the dollar-based pairs should the dollar index continue to decline we can see fx pairs namely EUR/USD and GBP/USD rise

Leave a Reply

Back to top button