Strongest US Dollar Since 2022 Bear Market: 5 Things to Know in Bitcoin This Week

Ex-Dividend Date and Stock Price Drop

Long-Term Dividend Impact on Stock Prices

Dividend Yield and Stock Price Movements

Investor Sentiment and Market Reactions

The Role of Dividends in Total Return

Strategists led by Kinger Lau remained 'overweight' on both onshore and offshore Chinese shares as the risk-reward ratio is still favourable, according to a note dated Sunday. “The sentiment and liquidity backdrop may begin to improve late in the first quarter of 2025 on better tariff and policy clarity,” they wrote.

The broker is sticking to its guns even though a similarly optimistic call in November looks increasingly at odds with recent market moves. The MSCI China Index tumbled into a bear market last week, and the CSI 300 gauge lost more than 5% in the first seven trading sessions of 2025, its worst such performance for any year since 2016.

Goldman recommended investors buy government consumption proxies, emerging market exporters which will benefit from a weaker yuan, as well as select tech and infrastructure names. Meanwhile, shareholder returns “should continue to prevail on record-breaking cash distribution and falling domestic rates”, they wrote.

In addition, the strategists also maintained an 'overweight' call on online retail, media and healthcare stocks, while upgrading consumer services shares to 'overweight'.

HSBC Holdings plc is similarly optimistic, saying last week that it’s positive on Chinese stocks listed in Hong Kong given the “favorable policy rhetoric” in mainland China and a better economic growth outlook.

Back in November, Goldman predicted that Chinese shares could gain about 20% over the next 12 months, as authorities stepped up measures to support the struggling economy. The MSCI China Index has lost about 10% since then as growth jitters, falling producer prices and the prospect of additional US tariffs unnerved investors.

Source: Theedgemarkets

AUD/USD declined below the 0.6350 and 0.6250 support levels. NZD/USD is also moving lower and might extend losses below 0.5540.

Important Takeaways for AUD/USD and NZD/USD Analysis Today

The Aussie Dollar started a fresh decline from well above the 0.6300 level against the US Dollar.

There is a connecting bearish trend line forming with resistance at 0.6175 on the hourly chart of AUD/USD at FXOpen.

NZD/USD declined steadily from the 0.5690 resistance zone.

There is a short-term bearish trend line forming with resistance at 0.5580 on the hourly chart of NZD/USD at FXOpen.

AUD/USD Technical Analysis

On the hourly chart of AUD/USD at FXOpen, the pair struggled to clear the 0.6300 zone. The Aussie Dollar started a fresh decline below the 0.6250 support against the US Dollar.

The pair even settled below 0.6220 and the 50-hour simple moving average. There was a clear move below 0.6200. A low was formed at 0.6139 and the pair is now consolidating losses. On the upside, an immediate resistance is near the 0.6175 level.

There is also a connecting bearish trend line forming with resistance at 0.6175. It is close to the 23.6% Fib retracement level of the downward move from the 0.6288 swing high to the 0.6139 low.

The next major resistance is near the 0.6210 zone or the 50% Fib retracement level of the downward move from the 0.6288 swing high to the 0.6139 low, above which the price could rise toward 0.6290. Any more gains might send the pair toward the 0.6320 resistance.

A close above the 0.6320 level could start another steady increase in the near term. The next major resistance on the AUD/USD chart could be 0.6400.

On the downside, initial support is near the 0.6140 zone. The next support sits at 0.6120. If there is a downside break below 0.6120, the pair could extend its decline. The next support could be 0.6050. Any more losses might send the pair toward the 0.6000 support.

NZD/USD Technical Analysis

On the hourly chart of NZD/USD on FXOpen, the pair also followed a similar pattern and declined from the 0.5700 zone. The New Zealand Dollar gained bearish momentum and traded below 0.5635 against the US Dollar.

The pair settled below the 0.5600 level and the 50-hour simple moving average. Finally, it tested the 0.5540 zone and is currently consolidating losses.

Immediate resistance on the upside is near the 23.6% Fib retracement level of the downward move from the 0.5692 swing high to the 0.5542 low at 0.5580. There is also a short-term bearish trend line forming with resistance at 0.5580.

The next resistance is the 0.5620 level or the 50% Fib retracement level of the downward move from the 0.5692 swing high to the 0.5542 low. If there is a move above 0.5620, the pair could rise toward 0.5635.

Any more gains might open the doors for a move toward the 0.5690 resistance zone in the coming days. On the downside, immediate support on the NZD/USD chart is near the 0.5540 level.

The next major support is near the 0.5500 zone. If there is a downside break below 0.5500, the pair could extend its decline toward the 0.5465 level. The next key support is near 0.5420.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Source: ACTIONFOREX

The Pound Sterling faces a sharp sell-off as rising borrowing costs for the UK government could force the administration to cut public spending.

Surprisingly upbeat US NFP data has forced traders to pare dovish Fed bets.

Investors await the UK-US inflation data for December, which will be released on Wednesday.

The Pound Sterling (GBP) extends its losing streak against its major peers at the start of the week. The British currency continues to face selling pressure as soaring yields on United Kingdom (UK) 30-year gilts deepen concerns over the nation’s economic outlook.

30-year UK gilt yields roar to near 5.47%, the highest level since 1998. Market experts view the surge in gilt yields as partly driven by the uncertainty over incoming trade policies by United States (US) President-elect Donald Trump, who is set to enter the White House on January 20, and the UK’s heavy reliance on foreign financing to address their funds’ demand for domestic spending.

"The more a country relies on foreign financing for its domestic debt issuance, the more exposed it is to the global environment," Deutsche Bank said and added that from the perspective of external flows, the UK is one of the “most vulnerable in the G10".

Soaring UK government’s borrowing costs have jeopardized Chancellor of the Exchequer Rachel Reeves’s decision to fund day-to-day spending through tax receipts and cut public spending. However, UK Treasury Minister Darren Jones clarified at the House of Commons on Thursday that the government's decision to only borrow for investment was "non-negotiable”.

Going forward, the next trigger for the Pound Sterling will be the UK Consumer Price Index (CPI) data for December, which will be released on Wednesday. The consumer inflation data will significantly influence market speculation about the Bank of England’s (BoE) monetary policy outlook. Currently, UK rate futures show that traders pare BoE dovish bets and see a 44 basis points (bps) interest rate reduction this year against the 50 bps recorded last week.

Daily digest market movers: Pound Sterling weakens against US Dollar ahead of UK-US inflation data

The Pound Sterling posts a fresh yearly low to near 1.2120 against the US Dollar (USD) on Monday. The GBP/USD pair weakens as the US Dollar strengthens as traders pare Federal Reserve (Fed) dovish bets this year after the release of the surprisingly robust US Nonfarm Payrolls (NFP) data for December.

The US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, moves higher to a more-than-two-year high near 110.00. The US NFP report showed that labor demand remained strong and the Unemployment Rate decelerated, easing fears of a slowdown in the job market, which forced Fed policymakers to pivot to a policy-easing cycle with a larger-than-usual pace of 50 basis points (bps) in September.

Analysts at Macquarie expect the Fed to cut borrowing rates only once this year, with the current interest rate cycle bottoming in the range of 4.00%-4.25%.

This week, investors will focus on the US Producer Price Index (PPI) and Consumer Price Index (CPI) data for December, which will be published on Tuesday and Wednesday, respectively. Signs of stubborn inflation data would further weigh on the Fed’s dovish bets.

Technical Analysis: Pound Sterling posts fresh yearly low near 1.2120

The Pound Sterling refreshes its more-than-a-year low to near 1.2120 against the US Dollar in Monday’s European session. The selling pressure in the GBP/USD pair was triggered after the pair broke below the January 2 low of 1.2350.

Vertically declining 20-day Exponential Moving Average (EMA) near 1.2450 suggests that the near-term trend is extremely bearish.

The 14-day Relative Strength Index (RSI) slides to nearly 26.70, the lowest since October 2023. This scenario suggests a strong bearish momentum. However, a slight recovery cannot be ruled out as the momentum oscillator is in oversold territory.

Looking down, the pair is expected to find support near the October 2023 low of 1.2050. On the upside, the 20-day EMA will act as key resistance.

Source: FXSTREET

A Portfolio of Innovative Long-Term, Double-Digit Winners

Source：State Street Global Advisors