We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now


It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Why Did The Market Drop?

Share On Facebook
share on Linkedin

“From a small seed a mighty trunk may grow”, also the saying may not be exactly about financial markets, but there is no better way to describe the short but intense last week.


To begin with, for the first time in U.S. history, an ex-U.S. president was indicted on criminal charges. Precisely, for falsifying business records to hide compromising information and illegal activities.

In the worst-case scenario, 76-year-old Donald Trump could face up to four years in prison for each of the 34 charges. Most likely, however, the former White House chief would have to pay a fine with no handcuffs involved…

It is worth mentioning that the next in-person court hearing is scheduled for December 4 this year in New York, so we could forget about the topic for a few months unless something extraordinary happens.

So, if everything is so great, why the heck did the market, including US Dollar Index, go down on Monday?

The fact that job openings fell by 632,000 to 9.9 million on the last day of February, the lowest level since May 2021, could be one of the reasons as it heightened fears of an economic recession in the country.

The ambiguity of the situation is that, on the one hand, a slowdown in the economy could encourage the Fed to pause its rate hike (a bullish point for gold, XAUUSD). On the other hand, the threat of stagflation is growing.

No wonder then that countries have gradually begun to diversify their currency portfolios. Over the past two weeks, Russia, India, Brazil, Kenya, Saudi Arabia, the United Arab Emirates, and China have announced their intention to increase the proportion of national currencies in payments.

The good news is that, despite the flashy headlines, it is too soon to write off the dollar’s dominance. Even if the Chinese yuan gains a share in trade and cross-border payments, the USD will remain the reserve currency of choice for developed countries’ central banks.


CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

Support: 1-888-992-3836 | help@advfn.com

V: D: 20231003 17:00:47