Portfolio rebalancing and reflation trades emerge into Q2 [Video]
European stocks renewed record on Wednesday, the US dollar consolidated gains and the S&P500 stocks got a late-session boost. Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.
Moving forward, extension of stock rally and USD appreciation seem unlikely. One must give. The EURUSD holds ground near the 1.08 level – because the European Central Bank (ECB) looks determined to continue fighting inflation. But a robust GDP and a hot inflation report could break the back of the EURUSD bulls.
In Japan, the sumo fight between the Japanese officials and the yen bears remains intense as the yen bears are testing the Japanese nerves near the 152 level. But a hint of further policy tightening is certainly more effective than costly and barely effective FX threats/intervention.
Reprinted from FXStreet，the copyright all reserved by the original author.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.