Higher-yielding developed-market currencies, such as the Australian dollar and sterling, hold onto gains against the U.S. dollar after a statement from the Group of Seven countries said they stood ready to cooperate on actions to mitigate the impact of the coronavirus epidemic. Capital Economics says the statement "falls short of hopes of...an immediate and coordinated fiscal package and interest rate cuts." Mark McCormick, head of FX strategy at TD Securities says a "shift to fiscal easing" over rate cuts would be "more desirable" for currencies. GBP/USD is last up 0.3% at 1.2794. AUD/USD rises 0.6% to 0.6566, shrugging off a rate cut in Australia overnight.
Forex and stock traders are looking for the consistently wrong investor, trader and take the opposite position. This will obviously lead to winning trades for them. All traders have read trading books that point out that increasing volume is good for the continuation of the trend. Many new stock traders will try and fight the trend.
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