Analysis of key markets.
The U.S. dollar steadied on Tuesday as rising coronavirus cases and doubts over the speed and size of U.S. stimulus tempered financial markets’ upbeat mood, while investors were also cautious ahead of the Federal Reserve’s review later in the week.
Oil prices fell on Tuesday as fading hopes for a rapid approval of new U.S. economic stimulus and mounting new coronavirus cases raised questions over the pace of any recovery in demand.
Gold was up on Tuesday morning in Asia, amid concerns over the timing and size of U.S. stimulus measures.
➕ Industrials ➖ Financials ➖ Resources (in ranking order)
If there is a negative correlation between markets, it means one of the
markets’ price will go up, while the other will likely drop. When you trade
each of these assets, you might succeed in any market, by avoiding the steep
climbs and large dips expected with a single market type. In the same way,
positively correlated markets could enable you to profit from both markets if
the price moves in the direction that you speculate.