The events of the last two weeks clearly show that investors are not ready to fully enter the market for cheaper shares of companies against the background of coronavirus. This dynamic is also fully confirmed by the behavior of the US dollar.Last week, a generally positive attitude of investors towards buying stocks of companies was noted in the markets. On this wave, government bonds of economically strong countries were sold, the demand for safe-haven currencies such as the yen and the Swiss franc, decreased, and the dollar declined significantly against major currencies. The reason for this was the announcement by the Fed, the US Treasury, and other major global Central Banks of the broadest incentive measures. But this week, the mood turned 180 degrees, already against the background of the first economic statistics coming out over the last coronavirus time. They turned out to be extremely negative for Europe and America, although on the contrary, the figures from China were optimistic.Why does the market react like that? This is due to the fact that there are reasonable expectations that until demand in Europe and North America is restored, and these are the main consumers of Chinese products, active production in the…
Higher linear regression channel: direction – downward.
Lower linear regression channel: direction – downward.
Moving average (20; smoothed) – upward.
The GBP/USD currency pair starts the fourth trading day of the week with a rather weak (for current realities) movement along with the Murray level of “3/8”-1.2451. Over the past few days, the pound/dollar pair has worked out this level several times, but never managed to gain a foothold above it or, on the contrary, push off from it and start a downward correction. Thus, we believe that traders have come to a certain “point of equilibrium” – the balance of supply and demand. In order for the pair to continue the upward trend or complete it, you need serious fundamental reasons or the entry of major players into the currency market with large transactions. During the past day, macroeconomic statistics from overseas could support the US dollar (as was the case with the euro currency), however, quite unexpectedly, the correlation through the US dollar was broken in the last two days. Before that, the EUR/USD and GBP/USD pairs moved almost identically with adjustments for volatility.
In principle, there is no news from the UK at the moment. Except for new reports…
Consumer prices in South Korea were up just 1.0 percent on year in March, Statistics Korea said on Thursday. That was in line with expectations and down from 1.1 percent in February. On a monthly basis, inflation gained 0.2 percent – again matching forecasts and up from the flat reading in the previous month. Core consumer prices, which exclude the volatile costs of fresh food items, gained just 0.4 percent on year. That was shy of expectations for 0.5 percent, which would have been unchanged from the February reading. On a monthly basis, core CPI fell 0.2 percent – missing expectations for a flat reading following the 0.1 percent gain a month earlier. The material has been provided by InstaForex Company – www.instaforex.com…
Who will reign? The US dollar or noble metals? Here’s a comprehensive analysis of options for the movement of #USDX vs Gold & Silver (DAILY) in April 2020
Minor operational scale (daily time frame)
US dollar index
The movement of the #USDX dollar index in April 2020 will be determined depending on the development and the direction of breakdown of the boundaries of the equilibrium zone (98.80 – 99.90 – 101.10) of the Minor operational scale forks. We look at the details of movement inside this equilibrium zone on the animated chart.
The upward movement of the dollar index can be continued in case of breakdown of the resistance level of 101.10 on the upper boundary of the ISL61.8 equilibrium zone of the forks of the operational Minor scale and the targets of this movement will be :
– the final Shiff Line Minor (101.80);
– maximum 102.99;
with the prospect of reaching the warning line UWL38.2 (103.50) of the Minuette operational scale forks.
Meanwhile, the downward movement of #USDX will become relevant in the event of a breakdown of the support level 98.80 at the lower boundary of the ISL38.2 equilibrium zone of the Minuette operational scale forks…
The U.S. dollar stayed firm against most of its peers on Wednesday amid fears of an imminent deep recession due to the impact of the rapidly spreading coronavirus pandemic. A report from payroll processor ADP said private sector employment fell by 27,000 jobs in March in the U.S. after jumping by a downwardly revised 179,000 jobs in February. The dollar index rose to 99.84 this afternoon, but gave up much of its gains subsequently and was last seen at 99.41, up 0.35% from Tuesday’s close. Economists had expected private sector employment to plunge by 150,000 jobs compared to the addition of 183,000 jobs originally reported for the previous month. The drop was much smaller than expected but still reflects the first decrease in private sector employment since September of 2017. The Institute for Supply Management’s report showed a contraction in U.S. manufacturing activity in the month of March. The ISM said its purchasing managers index dipped to 49.1 in March after edging down to 50.1 in February. While a reading below 50 indicates a contraction in manufacturing activity, economists had expected the index to show a steeper drop to 45.0. Against the euro, the dollar strengthened to $1.0964 from $1.1041,…
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