Domestic stock markets also became popular as futures on the S & P 500 index rose on Friday and continued to do so on Monday morning, rising 0.3%.
However, it is important to remember that stocks and currencies very rarely move in the same direction, and even more so this movement is consistent. So, a good idea would be to look closely for a catch. In our opinion, the highest risks at the moment concern the stock market rather than the US dollar. Demand in USD is higher compared to the European and Asian economies, which are experiencing a significant slowdown. In simple terms, the dollar is perceived as the least risky of the group. This is exactly the opposite of the situation that prevailed at the end of 2016, when the growth of the US dollar was solely based on expectations in terms of tax relief.
The same goes for the stock market. US indices are growing due to the release of positive results, but the Fed is softening its speech by anticipating the end of the tax break. This could mean that US companies are currently going through a period of strong growth. In addition, the worst month of December in the past 100 years has created market rebound potential, which supported ratings in January.
It is also important to note that such growth can not be sustainable or long. For now, this simply allows investors to ignore the imbalance in the global downturn and the record level of public debt. Investors do not seem to have long-term plans, they live in the moment and just pay attention to the moderate rhetoric of central banks and the positive impact of corporate news.
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