The Market Is Increasingly Turbulent, Investors Be More Vigilant Ahead of the CNY Holiday


 Investors are increasingly reducing trading risk ahead of the approaching Chinese New Year holiday.

Market movements remain uncertain, but the US dollar is still seen moving gloomy with the expectation of the majority of economists based on a Reuters survey for the Federal Reserve (Fed) to slow down the tightening of monetary policy.

But throughout this week's trading, occasionally the US dollar is seen to strengthen for a while due to some Fed officials who still believe the central bank still needs to continue tightening its policy.

The latest statement that investors studied, Fed Deputy Chairman Lael Brainard stated that inflation is still high and policy needs to be tightened to ensure inflation reaches the 2% target.

Meanwhile, New York Fed President John Williams thinks that destination is more important than speed, which will be the key to the question of rate hikes.

Speeches from Philadelphia Fed President Patrick Harker and Governor Christopher Waller will be the next focus in the run-up to the policy meeting in early February.

Market sentiment was slightly restored by the report of a surge in subscribers of the United States (US) streaming giant Netflix, which recorded 230 million global subscribers by the end of 2022, surpassing market forecasts.

However, concerns about the risk of a global recession still haven't disappeared after the US economic data recorded a bad reading.

While commodity trades such as gold and crude oil were more positive at the end of the week following expectations that the Fed would slow down the tightening of monetary policy.

Other major currencies in the market were gloomy and flat at the end of the week, but still have a chance to gain if the US dollar more clearly shows its depreciation.

Beware of price movements that are expected to be volatile at the end of this week's sessions before the market rests in conjunction with the Chinese New Year celebrations.