The Dow Jones Industrial Average rose sharply during the day, closing up 2.92%, recovering about half of its losses last week, with bank stocks leading the gains. European stock markets also rose sharply, closing up 2.55%. Brokerages issued positive comments on stocks such as Bank of America, Lowe's Co., the second largest home improvement retailer in the United States, released stronger-than-expected quarterly results, and oil prices rose to a six-month high, all supporting risk appetite. U.S. Treasury Secretary Gaynor made optimistic remarks, saying that the U.S. economy is clearly stabilizing and financial markets have clearly stabilized. World Bank President Zoellick said on Monday that the world economic downturn may slow down and the economy is expected to resume growth as early as the end of 2009. In addition, it is rumored that Goldman Sachs Group and Morgan Stanley applied to withdraw from the TRAP program and apply to repay the total US$45 billion in TRAP rescue funds they had previously received from the U.S. government. Risk appetite has heated up sharply, with Africa and the United States soaring across the board. The dollar and yen were under pressure, but the yen was more severely pressured. The U.S. firm Mudlow Investment Services announced a downgrade of Japan's foreign currency treasury bonds and foreign currency ratings; the Japanese Ministry of Finance once again issued verbal intervention remarks, both of which suppressed the yen. EUR/JPY surged sharply after breaking through the downward channel on the hourly chart, leading other Japanese yen crosses to also rise sharply. The daily charts of USD/JPY, GBP/JPY and EUR/JPY all show signs of reversal to the upside. The possibility of further rebound cannot be ruled out. Today, the Asian market will release the minutes of the Australian monetary policy meeting, which deserves attention. Currency markets have once again tracked equity markets, and in the short term, the correlation appears to show no signs of getting out of whack. On Tuesday, the market will release UK inflation, German ZEW and US housing data. The current focus of the market is obviously on economic growth, and we already have a general understanding of UK inflation in last week's Bank of England inflation report, which is that in the medium term Domestic inflation is likely to remain within the central bank's target level; therefore, the latter two data may receive more attention, especially the German ZEW data. GDP data released by the Eurozone last week was disappointing, and the euro has lagged behind most major currencies in subsequent movements; the market will look to the upcoming data for clues to see whether the euro is worthy of its status as the world's major reserve currency status. Good data will once again increase hopes for a rapid economic recovery in the region, while weak data may further dampen market confidence. The way US data affects the exchange rate is mainly through the US stock market, which has become a recent practice. After yesterday's strong rise, whether U.S. stocks can maintain their upward trend will depend on the extent to which data can provide support.
The price of gold fell sharply yesterday and fell below the 80-hour and 120-hour ascending channels. I believe there is little chance of returning above 927 today, but the support purchasing power of 915 below is also quite strong. I believe it will happen today. It is in a consolidation pattern, but it is mainly short-selling at 921-923 and closing at 918.
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