Dollar will be tested if stocks correct – City Index

High risk of major stock market correction in US will dampen dollar strength, says broker

City Index: in the event of a full trade war, China may fare better as its stock market is less susceptible to capital outflows


The dollar’s recent bout of strength may reverse, as the probability of US stock markets experiencing a major correction increases in the second half of 2018, says Kelvin Wong, chief technical strategist for Asia at City Index.

“In the next three to six months, there is a high risk that stock markets may see a major cyclical top that will lead to [a] significant corrective down move that can force the Fed to provide a more dovish guidance on its interest rate

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