Risk aversion is gripping stock markets today.
The unwinding of long positions, possibly accumulated in recent sessions, caused many indices to give up their recent gains. Dax is down by more than 200 points; whilst the FTSE 100 Index pulled back from its record highs.
As a result, investors piled into USD further and pushed GBPUSD below 1.335 at the time of writing. Euro-Dollar is flirting with 1.17.
With investors now focussing on protecting their recent gains (stocks have rallied hard since mid-March), we would not rule a further rotation into USD, especially as UK macro data are continuing to be soft. House prices released today shows a flattening trend; while UK CPI is continuing to fall.
Jackson has over 10 years experience as a financial analyst. Previously a director of Stockcube Research as head of Investors Intelligence providing market timing advice and research to some of the world largest institutions and hedge funds.
Expertise: Global macroeconomic investment strategy, statistical backtesting, asset allocation, and cross-asset research.
Jackson has a PhD in Finance from Durham University.