FXTM information and reviews
IronFX information and reviews
Libertex information and reviews
FXCC information and reviews
Markets.com information and reviews
FxPro information and reviews
43 916.48

Market sentiment improves

3 March 2020

A sense of optimism over global central banks and governments acting with a co-ordinated policy response has revived appetite for riskier assets.

Shares in Asia pushed higher on Tuesday following the overnight rally on Wall Street thanks to stimulus hopes, and this positivity is likely to roll-over into European markets ahead of a conference call today by G7 finance ministers at midday GMT. Investors remain hopeful that G7 countries will join hands to battle the COVID-19 outbreak by enforcing a wave of fiscal measures. However, questions are still being raised as to whether central banks have enough ammunition in their policy toolkits to counter the negative impacts of the outbreak. Let’s not forget the coronavirus is a health crisis that causes major supply-side shocks, so looser monetary policy may have minimal impact in solving the matter at hand.

Dollar humbled by Fed rate cut bets

The mighty Dollar has not been so mighty over the past few days, amid speculation around the Federal Reserve cutting interest rates as soon as its meeting on March 18.

While the Greenback is still considered as a safe-haven destination, investors may be coming to terms with the fact that the US economy is not bullet proof from the virus outbreak and this presents negative risks going forward. Signs of the outbreak impacting economic growth in the States may question the Dollar’s safe-haven status and fuel speculation around the Fed cutting interest rates further, beyond March.

Rocky path ahead for Sterling

After three years of dramatic and chaotic negotiations on the UK’s exit from the European Union, post-Brexit trade talks officially kicked off yesterday.

It looks like both sides have entered the talks adopting a hard-line stance, with Boris Johnson threatening to walk away if negotiations fail to progress by June. Pound sensitivity to Brexit headlines is set to intensify this week and for the rest of the first quarter, as investors evaluate whether a hard Brexit will become reality by the end of 2020.

Focusing on the technical picture, GBPUSD is under pressure on the daily charts. A breakdown below 1.2750 may inspire a decline towards 1.2650. Alternatively, an intraday breakout above 1.2830 could trigger a move towards 1.3000.

Commodity spotlight – Gold

Gold regained some of its lustre on Tuesday, rising roughly 0.5% after experiencing its worst single-day decline since 2013, last Friday.

Although the technical picture suggests that Gold could extend losses, the fundamentals remain in favour of the bulls. Concerns over slowing global growth remain rife amid the coronavirus outbreak, especially after the Organisation for Economic Co-operation and Development (OECD) downgraded its 2020 global growth forecast from 2.9% to 2.4%. The general unease and speculation around loose monetary policy should support appetite for Gold, especially amid the potential for a weaker dollar.

Focusing on the technical picture, Gold is under pressure on the daily charts with prices trading around $1598 as of writing. Sustained weakness below $1600 may encourage a decline back towards $1579 in the near term. Alternatively, a breakout above $1600 could open the doors towards $1620.



Dollar starts Fed week on front foot, stocks hit by Evergrande fallout
Dollar starts Fed week on front foot, stocks hit by Evergrande fallout

Fears of global contagion from the worsening crisis in China's property sector continued to weigh heavily on sentiment at the start of trading on Monday as markets...

20 Sep 2021

Dollar jumps, gold slumps, stocks nervous
Dollar jumps, gold slumps, stocks nervous

Worries that the US consumer is rolling over were dealt a major blow yesterday after the nation’s retail sales for August overpowered some gloomy forecasts. The retail sales...

17 Sep 2021

Energy is the play: how we get to $100 crude
Energy is the play: how we get to $100 crude

Natural gas futures in Europe and the UK are flying, while our natural gas (NG) CFD (the underlying is traded on the NYMEX) pushed over $5.60 and into 7-year highs...

16 Sep 2021

Are investors sleeping on systematic risk in China?
Are investors sleeping on systematic risk in China?

It’s time to talk about China. The situation is getting dicier as the nation’s second-largest property developer - Evergrande - is on the verge of default. Trading in the company...

16 Sep 2021

Sentiment sours as the S&P 500 tests key support
Sentiment sours as the S&P 500 tests key support

We head to quadruple witching in the US on Friday and notably options expiration (OPEX), and the weakness we see time and again in the week before seems...

15 Sep 2021

Dollar unscathed by soft inflation, equities resume slide
Dollar unscathed by soft inflation, equities resume slide

Dollar takes little damage despite signs US inflation has peaked - Wall Street resumes selloff - all eyes on China contagion risks - Canadian data coming up ahead of elections, gold wakes up...

15 Sep 2021

Forex Forecasts

OctaFX information and reviews
HotForex information and reviews
XM information and reviews
FXCM information and reviews
Vantage FX information and reviews
Vantage FX
Moneta Markets information and reviews
Moneta Markets

© 2006-2021 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.