Things have settled down with global stock indices extending their advance following Monday’s big upsurge and risk-sensitive currencies are also pushing higher. Investors are betting that the coronavirus outbreak may have peaked and are ignoring the economic slump that we are in. They are hoping that with the death rate falling in parts of the …
Here are the before and after charts of the trade signals for March 2020 in the Discretionary trade signals group on Telegram. USD/CAD Long Issued: 2nd March Closed USD/CAD long essentially at break-even (a few pips profit) after the Fed’s unexpected rate cut. In hindsight, this trade would have worked beautifully if we kept it …
No one used to care about it, but now it is arguably the most important macro data. The weekly unemployment claims hit a new record as 6.6 million people applied for it, doubling from 3.3 million the week prior. As soon as the data came out, European stock indices and US index futures, which had …
Stocks relinquish gains as jobless claims surge by 6.6 million Read More »
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The price of oil is falling sharply again today after a few days of consolidation. The reason is simple: there is a massive imbalance of historic proportions. Global demand has slumped because of the covid-19-related lockdown. Supply, which was already higher than needed, is currently excessive to say the least as Saudi, Russia and the …
After a nice recovery over the last few days, investors will be wondering whether the selling is about to resume again in this bear market. With a growing number of countries in lockdown and the virus still spreading rapidly in Europe and the US, it is very difficult to be optimistic about the global economic …
Stocks likely to face stiff resistance despite stimulus measures Read More »
The Federal Reserve threw the kitchen sink at the problem caused by the coronavirus outbreak today and although the markets initially welcomed the news, the gains have since evaporated. The market’s reaction should not come as a surprise given that we have seen similar responses to other stimulus packages announced by central banks and governments …
Stocks shrugs off Fed’s unlimited Treasury buying pledge Read More »
Despite ongoing risk off tone in the equity and commodity markets, the USD/JPY has been rallying sharply amid widespread dollar strength. But rates have now arrived at a key technical juncture. What happens next is important: a break above the resistance zone could pave the way for further sharp gains, while a rejection here could …
Following ECB’s decision to announce a massive, open-ended, €750 billion asset purchase programme in an effort to mitigate the economic impact of the virus outbreak, the EUR/USD has nosedived. Already under pressure because of a rallying US dollar, this package was the final nail in the coffin for the single currency. If it stays below …
I was asked by a friend about my views of the EUR/USD. So wanted to share what I said to him here. I will keep it very brief, but first have a look at this EUR/USD chart showing price action on H1, Daily and Monthly time frames: Monthly is currently displaying a doji candle. The …
