Which Asset Class Has Got It Right?

As the bond, commodity and currency markets continue to price in more risk to come, we’ve seen the equity market show some cautionary flows this week. This upcoming week, US-China tensions will be front of mind as markets digest flash PMI data & ongoing virus statistics.
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Which asset class has got it right? That seems to be the question on a lot of analyst’s mind recently as Equity market continue their march higher despite diverging from other asset classes.

The bond, commodity and currency markets have all been pricing in more risk to come recently, and this week saw some of that risk coming back into focus for equities as well.

Why is this important for us as Forex traders you may ask? Currencies don’t move in a vacuum. Remember that all markets (bonds, commodities, equities and currencies) are connected and inter-connected.

Strong moves in the bond can have transmission affects into the others. That’s why keeping a close eye on how the various asset classes perform can give us great trading opportunities if we know what to look for.

This week ahead video will help you prepare for this week’s upcoming events and provide insights into how you could possibly trade it as well.

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Highlights of the video:

00:28 – Current Baseline

03:39 – Baseline expectations for the upcoming risk event

07:15 – Possible sentiment shifts 10:13 – Possible currency pairs to consider

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