Tiny Coronavirus dictates the policy choices of the world’s most powerful central bank’s hand and forces the Fed to stay dovish. The FOMC minutes reiterated the Fed’s commitment to maintaining their extremely accommodative monetary policy. According to the Fed, “the path ahead remained highly uncertain”. Traders are now focusing on Fed Chair Powell’s speech, due later today. By reading further you agree with our disclaimer at the bottom of this page and acknowledge that we do not provide investment advice.
USD started to gain some ground in the US session yesterday as the EURUSD advance slowed down significantly. The pair hit the 1.1882 resistance we identified yesterday while USDCHF started to also attract buyers. The pairs have a high negative correlation so this was to be expected. GBPUSD declined further after failing to attract new buyers above 1.3900 the day before. USD rallied against the CAD even though the Canadian Ivey PMI surprised with a 12.9 point jump. Analysts expected the index to be confirmed at 62 but the actual number was as high as 72.9 which is the highest reading in 10 years. Weakness in USOIL tends to soften the CAD due to the commodity export-driven nature of the Canadian economy.
Open a VIP Black account with us. There are no per trade execution or monthly fees on our VIP Black accounts.
A slight (0.82%) rise in the US Treasury yields caused the price of gold to take a pause after rallying higher on Tuesday. S&P 500 traded higher in yesterday’s session and the index futures are moving into new record highs at the time of writing this. The move was supported by the big technology companies (FB +2.23, AMZN 1.72%, AAPL +1.34%, GOOG 1.12%). The biggest mover in the US sectors was the basic materials which lost 1.72%. The communication services sector gained 0.77%. Today’s economic risk event number one is the Fed Chair Jerome Powell’s speech. For more details on macroeconomic releases see our economic calendar.
NZDCHF has dropped almost 1.5% in just one week. Yesterday’s fall took the pair to the 0.6508 support from which the pair is bouncing higher this morning. The technical confluence areas above the price are 0.6565 – 0.6580 (SMA 50 and 23.6% retracement level) and 0.6596 – 0.6618 (SMA 20 and channel top). The confluence areas below the current price 0.6405 – 0.6415 (historical support and channel low).
Another big mover over the past week is the EURNZD which is up about 1%. The pair started to rally after it created a higher low at the beginning of the week and caused the SMA 20 to cross above the SMA 50. EURNZD is an interesting long candidate at lower levels. The most significant technical confluence areas are 1.6706 -1.6750 (SMA 20, SMA 50, 23.6% retracement and channel low) and 1.6945 – 1.6995 (38.2% retracement and recent swing high resistance).
Recent macroeconomic data releases
US Average Hourly Earnings -0.1%, 0.1% expected
US Non-Farm Employment Change 916K, 652K expected
US Unemployment Rate 6.0%, 6.0% expected
US ISM Services PMI 63.7, 58.3 expected
RBA Cash Rate 0.10%, 0.10% expected
Canadian Ivey PMI 72.9 62 expected
US Crude Oil Inventories -3.5M, -2.0M expected
US FOMC Meeting Minutes
Important macroeconomic data releases today
US Unemployment Claims 682K expected
Fed Chair Powell Speaks
RBA Financial Stability Review
You may access the times and dates in the economic calendar here.
Open a VIP Black account now at www.TIOmarkets.com. We want you to be able to exploit trading opportunities in financial markets with 0 commission and tight spreads. Take advantage of the best trading account in the industry: Tiomarkets VIP Black. For more details on this truly exceptional offering see here. For more analysis and commentary, visit our YouTube channel where you can find daily market commentary videos to support your learning and growth as a trader.
Chief Market Analyst
TIOmarkets offers exclusively consultancy-free service. The views expressed in this blog are our opinions only and made available purely for educational and marketing purposes and do NOT constitute advice or investment recommendation (and should not be considered as such) and do not in any way constitute an invitation to acquire any financial instrument or product. TIOmarkets and it’s affiliates and consultants are not liable for any damages that may be caused by individual comments or statements by TIOmarkets analysis and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his/her investment decisions.
The analyzes and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with any legal requirements for financial analyzes and must, therefore, be viewed by the reader as marketing information. TIOmarkets prohibits duplication or publication without explicit approval. FX and CFDs are leveraged products. They are not suitable for every investor, as they carry a high risk of losing your capital. Please ensure you fully understand the risks involved.
All the prices in this report are CFD prices based on price charts provided by TIOmarkets unless otherwise stated.
Best pair to trade today Best stocks to trade right now Best time to trade Best time to enter a trad