FXTM information and reviews
FXTM
93%
IronFX information and reviews
IronFX
92%
Libertex information and reviews
Libertex
91%
ETX Capital information and reviews
ETX Capital
90%
Markets.com information and reviews
Markets.com
89%
FxPro information and reviews
FxPro
88%
EUR/USD
1.1765
BTC/USD
47 783.36
GBP/USD
1.3798
USD/JPY
109.7150
USD/CHF
0.9275
USD/CAD
1.2684
EUR/JPY
129.0813

Semblance of stability returns on CBs interventions


20 March 2020

A sense of stability returned to financial markets on Thursday after big bazookas from central banks slightly soothed fears over the coronavirus outbreak and global economy.

The European Central Bank (ECB) went all out by launching a mammoth €750 billion Pandemic Emergency Purchase Programme (PEPP) to calm markets and help the Eurozone economy. Down under, the Reserve Bank of Australia cut its official cash rate to a fresh historic low of 0.25% to cushion the economic impact of the coronavirus pandemic. South Africa’s central bank also pulled the monetary policy trigger by reducing the repo rate by 1% to 5.25%.

Even in the United Kingdom, the Bank of England cut interest rates to 0.1%, in a second emergency cut triggered by the coronavirus fuelled market chaos.

Repeated intervention from global central banks may offer a temporary lifeline to equities. However, fears revolving around the coronavirus and how badly it will hit global growth should limit appetite for riskier assets.

The S&P 500 attempted to stabilize on Thursday as prices kept above 2400. The improving market mood may encourage a move towards 2500 in the short term. If markets wake on the wrong side of the bed tomorrow, then prices could sink back below 2350.

Oil rebounds 20% as central banks fire away


Oil prices roared back to life on Thursday, bouncing off their lowest levels in 20 years as investors digested central bank and government support measures to support economic growth.

WTI Crude has appreciated almost 20% its multi-year lows and could extend gains in the short term amid stimulus hopes. While a technical rebound is on the cards, the fundamentals still remain in favour of bears. For as long as demand fears and oversupply concerns remain dominant themes, Oil is positioned to weaken further.

Looking at the technical picture, WTI Oil may rebound towards $30 in the short term before bears re-enter the scene.

Currency spotlight – EURUSD


The EURUSD is falling like a stone thrown into the ocean with no real floor in sight.

Euro has weakened against every single G10 currency, shedding over 2% against the Dollar despite the ECB launching a big bazooka.

Prices are heavily bearish on the daily charts as there have been consistently lower lows and lower highs. A solid daily close below 1.0650 should open the doors towards 1.0580.

#source

Related

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

US inflation under the microscope
US inflation under the microscope

With the Fed having almost locked in a November taper announcement, the question now is whether Chairman Powell will use next week’s policy meeting to give the markets...

14 Sep 2021

Wall Street loses altitude. Dollar grinds higher
Wall Street loses altitude. Dollar grinds higher

The relentless rally in US stock markets took a breather last week. Wall Street suffered a rare pullback as investors took some profits off the table, positioning...

13 Sep 2021


Forex Forecasts

OctaFX information and reviews
OctaFX
86%
HotForex information and reviews
HotForex
85%
XM information and reviews
XM
80%
FXCM information and reviews
FXCM
79%
Vantage FX information and reviews
Vantage FX
78%
Moneta Markets information and reviews
Moneta Markets
77%

© 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.