For the third time this month, the Bank of Canada lowered its key policy rate. A decrease of 0.5 percentage points to 0.25% put the rate to the “lower effective bound”. Besides, BoC announced the launch of QE to support credit markets without specifying the end date. USDCAD is shakenly adding after the statements as not only Canada, but the US also are taking aggressive measures to soften its monetary policy.
#WaveAnalysis
#EURGBP broke round support level 0.9000
Likely to fall to 0.8800
https://fxpro.news/market-snapshots/eurgbp-wave-analysis-27-march-2019-20200327/
#EURGBP broke round support level 0.9000
Likely to fall to 0.8800
https://fxpro.news/market-snapshots/eurgbp-wave-analysis-27-march-2019-20200327/
#WaveAnalysis
#Natural Gas reversed from resistance area
Likely to fall to 1.600
https://fxpro.news/market-snapshots/natural-gas-wave-analysis-27-march-2019-20200327/
#Natural Gas reversed from resistance area
Likely to fall to 1.600
https://fxpro.news/market-snapshots/natural-gas-wave-analysis-27-march-2019-20200327/
US indices are losing 3.5% on Friday after 6.4% growth a day earlier. The market rebound due to injections of liquidity from the Central Bank and massive incentives stalls amid signals of a weakening economy.
DXY loses the 6th consecutive trading session following the massive Fed's QE and swap lines. EURUSD climbed to 1.1050. GBPUSD develops a sharp rebound, trading at 1.2400, starting the week at 1.1450. Commodity currencies are again weakening towards USD.
Gold is still having difficulty rising above $ 1,630.
Brent is losing more than 5% to $ 27.50 due to speculation around a sharp drop in demand and the lack of OPEC's desire to cut production.
The global tipping point with the spread of coronavirus has not yet arrived, maintaining a shaky foundation under market recovery.
DXY loses the 6th consecutive trading session following the massive Fed's QE and swap lines. EURUSD climbed to 1.1050. GBPUSD develops a sharp rebound, trading at 1.2400, starting the week at 1.1450. Commodity currencies are again weakening towards USD.
Gold is still having difficulty rising above $ 1,630.
Brent is losing more than 5% to $ 27.50 due to speculation around a sharp drop in demand and the lack of OPEC's desire to cut production.
The global tipping point with the spread of coronavirus has not yet arrived, maintaining a shaky foundation under market recovery.
Over the past day, the number of new infections in the world increased by 59.4K cases against 32.6 a week earlier (60830 on Friday). In the USA, the number of confirmed cases reached 142.5K - the growth rate has stabilised near 20K per day, gives way some hopes for contagion. The same can be said about Italy and many other developed countries. In Spain, the number of confirmed cases falls for the fifth day in a row. However, in many developing countries, spreading has not yet slowed.
Stronger EURUSD is a good sign for markets
With the authorities of all countries pushing the monetary easing pedal to the floor, it becomes even more difficult for traders in the currency market to identify trends. The last such example in modern history was in 2008/2009. As a result, we can conclude that currencies will be extremely volatile.
If EURUSD is an equally reliable indicator for the markets this time, then we can expect with some caution the repeal of the situation towards improvement.
Despite EURUSD rollback by 0.6% to 1.1070 from 1.1140, an important signal for traders is last week’s closing EURUSD above the 200-day average. Which often precedes a significant increase in pair purchases in the coming days and may also serve as a harbinger of a global trend reversal in the pair for growth.
https://fxpro.news/daily-forex-outlook/stronger-eurusd-is-a-good-sign-for-markets-20200330/
With the authorities of all countries pushing the monetary easing pedal to the floor, it becomes even more difficult for traders in the currency market to identify trends. The last such example in modern history was in 2008/2009. As a result, we can conclude that currencies will be extremely volatile.
If EURUSD is an equally reliable indicator for the markets this time, then we can expect with some caution the repeal of the situation towards improvement.
Despite EURUSD rollback by 0.6% to 1.1070 from 1.1140, an important signal for traders is last week’s closing EURUSD above the 200-day average. Which often precedes a significant increase in pair purchases in the coming days and may also serve as a harbinger of a global trend reversal in the pair for growth.
https://fxpro.news/daily-forex-outlook/stronger-eurusd-is-a-good-sign-for-markets-20200330/
Which instrument do you see as the most interesting to trade this week?
Anonymous Poll
57%
EURUSD
21%
Gold
15%
Crude Oil
6%
Stocks and Indices
Bitcoin’s interrupted recovery
Another sideways trend for Bitcoin ended with a sale. At some point, Bitcoin was falling below $6K, and only a decline below that round level attracted buyers.
Central banks are trying to contain a “virus fire” in the global economy. Still, the process is complicated and lengthy, with many adverse effects just beginning to appear. Retail investors are preparing to tighten their belts for weeks or even months to come. New money supply from the Fed and Co. (other global central banks) is still infinitely far from the real sector, helping at this stage only to stabilize the quotes of some financial assets, but not retail. Whether institutional investors are using the current moment to buy is also a big question, as optimists already have a lot of options, while pessimists are preparing for the bottom ahead.
https://fxpro.news/analysis-and-insight/bitcoins-interrupted-recovery-20200330/
Another sideways trend for Bitcoin ended with a sale. At some point, Bitcoin was falling below $6K, and only a decline below that round level attracted buyers.
Central banks are trying to contain a “virus fire” in the global economy. Still, the process is complicated and lengthy, with many adverse effects just beginning to appear. Retail investors are preparing to tighten their belts for weeks or even months to come. New money supply from the Fed and Co. (other global central banks) is still infinitely far from the real sector, helping at this stage only to stabilize the quotes of some financial assets, but not retail. Whether institutional investors are using the current moment to buy is also a big question, as optimists already have a lot of options, while pessimists are preparing for the bottom ahead.
https://fxpro.news/analysis-and-insight/bitcoins-interrupted-recovery-20200330/
US markets have added 1.4% since the start of trading on Monday, after falling 3.4% on Friday. Markets balance between news of a slowdown in new infections (positive) and the prospect of more extended quarantine (negative).
DXY added after six sessions decline on traditional dollar demand increase at the quarter-end. EURUSD returned to 1.1030. GBPUSD remains at 1.24. The currencies of countries with acceleration in the cases growth rate as the market anticipates the tighter restrictions.
Gold is still having difficulty rising above $ 1,630.
Brent fell below $ 26, WTI at 21.70, losing more than 5% in the spot contracts. The nearest oil futures are at the lowest since 2002. Futures with later valuation dates marks a sharp rebound in prices.
The global tipping point with the spread of coronavirus has not yet arrived, maintaining a shaky foundation under market recovery.
DXY added after six sessions decline on traditional dollar demand increase at the quarter-end. EURUSD returned to 1.1030. GBPUSD remains at 1.24. The currencies of countries with acceleration in the cases growth rate as the market anticipates the tighter restrictions.
Gold is still having difficulty rising above $ 1,630.
Brent fell below $ 26, WTI at 21.70, losing more than 5% in the spot contracts. The nearest oil futures are at the lowest since 2002. Futures with later valuation dates marks a sharp rebound in prices.
The global tipping point with the spread of coronavirus has not yet arrived, maintaining a shaky foundation under market recovery.
#WaveAnalysis
#EURJPY reversed from resistance area
Likely to fall to 118.50
https://fxpro.news/market-snapshots/eurjpy-wave-analysis-30-march-2019-20200330/
#EURJPY reversed from resistance area
Likely to fall to 118.50
https://fxpro.news/market-snapshots/eurjpy-wave-analysis-30-march-2019-20200330/
#WaveAnalysis
#EURGBP broke support area
Likely to fall to 0.8750
https://fxpro.news/market-snapshots/eurgbp-wave-analysis-30-march-2019-20200330/
#EURGBP broke support area
Likely to fall to 0.8750
https://fxpro.news/market-snapshots/eurgbp-wave-analysis-30-march-2019-20200330/
Over the past day, the number of new infection in the world increased by 62.2K cases against 39.8K a week earlier (59.4K a day earlier). In the US, the number of confirmed cases reached 164.5K as the distribution speed has flattened to near 20K per day. The distribution rate has stabilised in large European countries also. In Italy, there was a daily increase of 4K cases against average levels of 6K per day over the previous ten days. The UK is an exception. There, a day-over-day growth of 2.7K is twice as high as a week earlier. Also, the spread is accelerating in Canada, Iran, a sudden leap in Japan.
The phrase “Chinese miracle” this year finds a new meaning. First it is commendable how quickly the Politburo recognized the danger of the situation in Wuhan and managed to contain its spreading across the country.
Now this phrase relates to how quickly this economy returns from halt. The PMI business activity indices in March came back into growth territory. Published service and manufacturing PMIs reached 52.3 and 52.0 in March against 29.6 and 35.7 in February.
Of course, this does not mean that this will be the case in Europe and the US, where a national quarantine will destroy business activity in both March and April.
https://fxpro.news/daily-forex-outlook/a-new-chinese-miracle-and-too-much-optimism-in-europe-20200331/
Now this phrase relates to how quickly this economy returns from halt. The PMI business activity indices in March came back into growth territory. Published service and manufacturing PMIs reached 52.3 and 52.0 in March against 29.6 and 35.7 in February.
Of course, this does not mean that this will be the case in Europe and the US, where a national quarantine will destroy business activity in both March and April.
https://fxpro.news/daily-forex-outlook/a-new-chinese-miracle-and-too-much-optimism-in-europe-20200331/
Bitcoin grew 5% in the last 24 hours and changing hands for $6,450 at the time of writing. However, so far, the first cryptocurrency has not been able to return to the previous week’s price corridor.
Market participants are watching Telegram’s judicial war with the SEC. However, there is already the collision of principles, and it is more likely that the regulator will win. Telegram is trying to ensure that the injunction does not apply to non-American investors, but even here, the company has little space for manoeuvre. Telegram’s failures may have a rather strong demoralizing effect on the sector as a whole.
Market participants are watching Telegram’s judicial war with the SEC. However, there is already the collision of principles, and it is more likely that the regulator will win. Telegram is trying to ensure that the injunction does not apply to non-American investors, but even here, the company has little space for manoeuvre. Telegram’s failures may have a rather strong demoralizing effect on the sector as a whole.
#WaveAnalysis
#GBPNZD rising inside short-term impulse wave (iii)
Likely to rise to 2.100
https://fxpro.news/market-snapshots/gbpnzd-wave-analysis-31-march-2019-20200331/
#GBPNZD rising inside short-term impulse wave (iii)
Likely to rise to 2.100
https://fxpro.news/market-snapshots/gbpnzd-wave-analysis-31-march-2019-20200331/
#WaveAnalysis
#NZDUSD reversed from resistance area
Likely to fall to 0.6000.
https://fxpro.news/market-snapshots/nzdusd-wave-analysis-31-march-2019-20200331/
#NZDUSD reversed from resistance area
Likely to fall to 0.6000.
https://fxpro.news/market-snapshots/nzdusd-wave-analysis-31-march-2019-20200331/
Over the past day, the number of new virus cases in the world increased by 75.1K against 49.6K a week earlier (62.2K a day earlier). Hopes to stabilize the pace of distribution have not been confirmed with a sharp jump in the US. But this may be due to the broader use of virus tests. A sharp rise by 7.7K new cases in France compared to +4.5K a day earlier. Such data somewhat diminished the optimism of market participants, returning the issue of extending quarantine to the agenda and causing a new wave of pressure on the markets at the beginning of the new quarter.
Over the past 24 hours, Bitcoin has shown attempts to reach $6,500, but the bears have pushed the coin back quite confidently to $6,300. In a day, the first coin is falling by almost 2%. Altcoins still do not show any independence.
The crypto market is currently experiencing some stagnation, but many large investors have already entered the market after a recent sale. Coinbase published data which showed that after the record collapse of the crypto market on March 12, there was a jump in purchases of major cryptocurrencies. Bitcoin showed a 6-fold increase in trading activity with 69% buy-ratio, while Ethereum showed a 5-fold increase in trading activity with 67% buy-ratio. Other altcoins showed growth of trading activity in 7 times. Similar processes were likely to take place at other crypto exchanges, and now all these purchased assets will wait for market growth.
The crypto market is currently experiencing some stagnation, but many large investors have already entered the market after a recent sale. Coinbase published data which showed that after the record collapse of the crypto market on March 12, there was a jump in purchases of major cryptocurrencies. Bitcoin showed a 6-fold increase in trading activity with 69% buy-ratio, while Ethereum showed a 5-fold increase in trading activity with 67% buy-ratio. Other altcoins showed growth of trading activity in 7 times. Similar processes were likely to take place at other crypto exchanges, and now all these purchased assets will wait for market growth.
The stalled rebound: markets brace for a longer recovery
The recent bounce in stocks has again attracted sellers among those who do not believe in the V-shaped rebound.
Our currencies as indicators of market sentiment stepped down from recent extremums, indicating that there is still a long way ahead.
AUDUSD finished the rebound and reversed downward, paving the way back to levels below 0.6000.
EURUSD declining for the third consecutive day and failed to stay above the 200 SMA where it climbed at the end of last week.
USDCAD shows an indicative technical picture. From lows in January near 1.30 it soared to 1.4660. Subsequently, it stabilized at 1.4000, in line with the Fibonacci corrections.
According to this theory, the subsequent growth in the pair may target levels near 1.5700, where USDCAD hasn’t been since 2002.
https://fxpro.news/daily-forex-outlook/the-stalled-rebound-markets-brace-for-a-longer-recovery-20200401/
The recent bounce in stocks has again attracted sellers among those who do not believe in the V-shaped rebound.
Our currencies as indicators of market sentiment stepped down from recent extremums, indicating that there is still a long way ahead.
AUDUSD finished the rebound and reversed downward, paving the way back to levels below 0.6000.
EURUSD declining for the third consecutive day and failed to stay above the 200 SMA where it climbed at the end of last week.
USDCAD shows an indicative technical picture. From lows in January near 1.30 it soared to 1.4660. Subsequently, it stabilized at 1.4000, in line with the Fibonacci corrections.
According to this theory, the subsequent growth in the pair may target levels near 1.5700, where USDCAD hasn’t been since 2002.
https://fxpro.news/daily-forex-outlook/the-stalled-rebound-markets-brace-for-a-longer-recovery-20200401/
Just as shockingly unprecedented was the data on initial jobless claims last week, the ADP's employment report looks just as surprisingly normal-ish. According to it, the was only 27K job loss against the expected fall by -150K. These are too-good-to-be-true data to reflect the picture for the month. Digging into the details of the survey showed that the report based on data collected until March 12. That is, up to a week of terrifying jump in claims. In this case, a positive headline is unlikely to have a noticeable effect on markets.
This week, our readers' interest fell on EURUSD, which leads by a wide margin. The chaotic moves of the world's most liquid currency pair which considered by many as a market barometer attract heightened attention. The volatility in gold fell, which immediately affected the interest in it. Oil and indices/stocks have received almost equal attention from traders. About the prospects for this week's winner, our next question ...