Market Snapshot – Dollar Continues to be Weak As Risks Threaten

Risks Keep Stock Markets Under Control

The tension has returned to the stock markets as many of the markets around the world traded in a sideways manner with a bearish bias. The dovish outlook from Draghi yesterday, when he said that the tapering would be done only in a calculated and slow manner, has weighed on the markets though it has helped the euro to continue to move higher in the meantime. Also, we have reports that North Korea might be launching a missile over the weekend to mark its National Day and many investors would not want to be invested into the stock markets at that point of time. So, we are seeing the traders and investors holding back on their investments and scaling back on their buys and thats why we have been seeing the stock marketing moving in a sideways manner.

Dollar Still Looks Weak

The dollar continues to be weak across the board and it has found little help from any of the Fed members so far. Even the little help that it was offered by the Fed member Dudley did not seem to be enough as it continues to move lower and the bears continue to sell. The pound seems to have made full use of the weakness in the dollar and continues to march higher in the meantime as it now trades near the highs of its range and looks like it might even break through this region in the short term, all due to the weakness in the dollar.