Global equities turned-up from pandemic recession.
Global equities hit a record high on Wednesday, ending a bear market that at one point had wiped a third of the value or roughly $22tn off publicly traded companies around the world. Investors have sent shares of high growth companies surging this year after central banks slashed interest rates and governments launched trillions of dollars of stimulus to help arrest an economic downturn spawned by the corona virus pandemic as mentioned in FT.
Meanwhile Euro and Pound remains pivotal ahead of various central bankers’speeches in Jackson Hole summit. Inevitably if Fed chair sounded extreme dovish which is not in our base case then we may see the upside rally in euro and pound continues. Admittedly options positioning do suggest for a limited downside in sterling but it may drastically reverse subject to how various rate setters take the monetary policy ahead.
TREND : SIDEWAYS
Time : 27/08/2020
Pivot : 1.1818
Technical View : LONG ABOVE 1.1838
Target : 1.1858, 1.1879, 1.1901, 1.1947
Technical View : SHORT BELOW 1.1798
Target : 1.1778, 1.1735, 1.1703