Good day traders,
What do you think about the hot topic for today? Which currencies will come out on top and which ones will lose tons of pips from the recent global market meltdown?
I think meltdown is a strong word or at the very least open to definition. The market will give you the answer once it will be too late for you to profit.
I agree with TheLastBear that meltdown is a big word for current market scenario. I would say that the market is volatile and uncertain. The Chinese economic slowdown has resulted in turmoil in global market which got well supported by FED’s decision and European markets too showed lot of tumbling.
Amid all these fluctuations, I think, USDCHF would be the least affected currency pair among all the pairs
Agree with you on that USDCHF one! I think the commodity currencies could still suffer the brunt of the decline, particularly AUD and NZD which are more exposed to Chinese markets. Europe seems to be facing troubles of its own but until the ECB or SNB confirms further easing, EUR and CHF could just keep cruising sideways.
Hello traders! Great topic…
There is a TON of analysis out there dedicated to this topic, and it is also a topic that has many conflicting views leading to entirely diverse forecasts, so it is impossible to get a consensus on if, how, and when ‘Risk Aversion’ will come to the markets.
However, equities have suffered some heavy blows, and the fact that, for example, the recent lack of movement on rates from the Fed did not translate into a US Equities rally (just look at an S&P500 daily chart) is indicative of a lack of drive for a ‘Risk On’ sentiment; combine that with a seven-year cycle from 2008 (which, in turn, was a seven-year cycle from the 2001 downturn) and the historic data showing that October is a ‘crash month’, and you can certainly justify an expectation or fear of global risk aversion and delevraging of over-exposed markets (like the S&P500, FTSE100, DAX, Nikkei225)…
After the 2008 crash caused by financial meltdown in the USA, which spread like a contagion on globallylinked economies, including ours, which is heavily dependent upon financial services as we produce very little, the Brown government was the first internationally to respond and their policies were replicated by most other countries, a mixture of stimulus and fiscal probity, which produced growth unlikely to be achieved by this government.