The whole financial market temporarily stabilized a bit on Thursday as it is reported that the US banking regulators are about to ease restrictions from the Volcker Rule, boosting the Wall street. Despite the fears of surging new coronavirus cases, risk appetite came back in the stock markets.
However, the greenback held steady on Friday Asian session, reflecting that investors are still concerning the economy reopening and keeping the demand for the safe-haven in the portfolio. The governor of Texas already halted the reopening as infections climbed.
Investors are also doubtful about the strong recovery as the initial claims on Thursday, recorded 1.48 million for the last week, showed a “slow” signal in the labour market.
ZFX analyst Jacob Leung said that recent market trends are just forming a big ranging pattern, reflecting weak market confidence. Bullish sentiment may not last for long and it was deemed as “stubborn optimism”.
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