Tag Archives: US30

Singapore Announces S$5.1 Bln Additional Stimulus On Covid-19 Shock

Singapore announced an additional S$5.1 billion (US$3.6 billion) stimulus to save jobs and protect the livelihoods of people amid the spread of coronavirus, or COVID-19, pandemic. This is the third stimulus package, which was unveiled by Deputy Prime Minister Heng Swee Keat on Monday, and covers wage subsidies and cash payout. With the latest announcement, the government’s response to COVID-19 will total S$59.9 billion or around 12 percent of GDP. The budget deficit is estimated to rise to 8.9 percent of GDP this year. The government obtained President’s in-principle support for a draw of up to S$17 billion from past reserves to finance its second package. The central bank had eased its monetary policy last week as the city-state is expected to enter a deep recession due to the interruptions to economic activity caused by the outbreak of COVID-19. “The primary aim of this Solidarity Budget is to take further steps to save jobs and protect the livelihoods of our people during this temporary period of heightened measures,” Heng said. “We will also help businesses preserve their capacity and capabilities, to resume activities when the circuit breaker is lifted,” he added. The wage subsidy for all firms…

Pound Appreciates As Virus Spread Slows

The pound strengthened against its major counterparts in the European session on Monday, as investors cheered news of a slowdown in coronavirus deaths across Europe. While Italy reported the fewest deaths in more than two weeks, France’s daily death count from the novel coronavirus dropped in the past 24 hours and admissions into intensive care also slowed. Elsewhere in Spain, the death rate fell for the third straight day. In the United States, President Donald Trump warned the country could be headed into its “toughest” weeks, but expressed hope the country was seeing a “levelling off” of the virus crisis. News that UK Prime Minister Boris Johnson has been admitted to hospital has sent the Pound lower at the beginning of the new week. The recovery came after housing minister Robert Jenrick said Johnson was fine and was expected to be back at 10 Downing Street soon. Survey data from IHS Markit and Chartered Institute of Procurement & Supply showed that the UK construction sector contracted at the steepest rate since April 2009 reflecting the impact of the COVID-19 pandemic. The construction Purchasing Managers’ Index dropped to 39.3 in March from 52.6 in February. A score below 50 indicates contraction….

EUR/USD and GBP/USD. Results of April 6. Coronavirus begins to recede in Europe. Euro and pound

4-hour timeframe
Average volatility over the past five days: 126p (high).
The first trading day of the week for the EUR/USD pair was held in absolutely calm, Monday trading. Like at a time when there was no epidemic of coronavirus yet, and panic did not engulf the currency, commodity and stock markets. The euro/dollar pair has passed only 68 points during the day. And this is absolutely the lowest figure for the past month and a half. Thus, we can confidently say that market participants continue to calm down after an almost one and a half month period of chaos and panic. This conclusion suggests that in the near future the markets will begin to recover. And so far, it is precisely and only about restoring markets, not the economies of the United States or the European Union. Markets are tricky, but even during a pandemic and crisis, they cannot contract and fall constantly. We need, so to speak, upward corrections. Whoever says anything, the number one energy price in the world — oil — cannot be $20-25 per barrel. Theoretically, this is possible. For a short period of time, but not constantly, and not in for the long…

Gold Prices Rise 1% As Dollar Stays Flat

Gold prices rose on Monday after the U.S. Labor Department’s report on Friday showed that the economy shed 701,000 jobs in March, halting decade-long record of growth. Coronavirus fears also drove investors towards the safe-haven metal. Spot gold rose about 1 percent to $1,634.99 per ounce, while U.S. gold futures were up 1.1 percent at $1,663.00 per ounce. U.S. employment plunged by 701,000 jobs in March after an increase of an upwardly revised 275,000 jobs in February. Economists had expected employment to slump by 100,000 jobs compared to the addition of 273,000 jobs originally reported for the previous month. The much bigger than expected decrease came as employment in the leisure and hospitality sector plummeted by 459,000 jobs, mainly in food services and drinking places. The jobless rate rose to 4.4 percent from 3.5 percent in February. Meanwhile, the United States on Sunday entered one of the most critical weeks so far in the coronavirus crisis, with government officials warning that the death toll in places such as New York, Michigan and Louisiana was a sign of trouble to come in other states. The material has been provided by InstaForex Company – www.instaforex.com…

Ireland Industrial Production Declines In February

Ireland’s manufacturing output fell in February after rising in the previous month, figures from the Central Statistics Office showed on Monday. Manufacturing output fell 1.1 percent month-on-month in February, after a 5.9 percent increase in January. Industrial production decreased 1.3 percent monthly in February, after a 5.9 percent increase in the previous month. On an annual basis, manufacturing output declined 1.3 percent in February, after a 0.5 percent increase in the previous month. Industrial production fell 1.1 percent year-on-year in February, reversing a 1.2 percent rise in the previous month. Data also showed that the industrial turnover declined 10.0 percent monthly in February and 6.0 percent from a year ago. The material has been provided by InstaForex Company – www.instaforex.com…

UK Car Sales Decline Sharply As Showrooms Shutdown: SMMT

UK new car sales declined sharply in March as showrooms closed after the outbreak of coronavirus pandemic, data from the Society of Motor Manufacturers and Traders, or SMMT, showed Monday. Car registrations plunged 44.4 percent on a yearly basis. The decline was steeper than during the 2009 financial crisis and the worst March since the late nineties when the market changed to the bi-annual plate change system, the SMMT said. In March, about 254,684 new cars were registered, with demand from private buyers and larger fleets falling by 40.4 percent and 47.4 percent, respectively. The lobby downgraded its 2020 outlook to 1.73 million units -23 percent decrease from the previous outlook made in January. This was around 25 percent lower sales than seen in 2019. “With the country locked down in crisis mode for a large part of March, this decline will come as no surprise,” Mike Hawes, SMMT chief executive, said. “We should not, however, draw long term conclusions from these figures other than this being a stark realisation of what happens when economies grind to a halt,” Hawes added. How long the market remains stalled is uncertain, but it will reopen and the products will be…

April 6, 2020 : GBP/USD Intraday technical analysis and trade recommendations.

Recently, the GBPUSD has reached new LOW price levels around 1.1450, slightly below the historical low (1.1650) achieved in September 2016.That’s when the GBP/USD pair looked very OVERSOLD around the price levels of 1.1450 where a double-bottom reversal pattern was recently demonstrated.Technical outlook will probably remain bullish if bullish persistence is maintained above 1.1890-1.1900 (Double-Bottom Neckline) on the H4 Charts.Bullish breakout above 1.1900 (Latest Descending High) invalidated the bearish scenario temporarily & enabled a quick bullish movement to occur towards 1.2260.Next bullish targets around 1.2520 and 1.2680 were expected to be addressed if sufficient bullish momentum was maintained.However, early bearish pressure signs have originated around 1.2470 leading to another bearish decline towards 1.2265.That’s why, H4 Candlestick re-closure below 1.2265 is needed to hinder further bullish advancement and enhance the bearish momentum on the short term.If so, Initial Bearish target would be located around 1.1900 provided that quick H4 bearish closure below 1.2265 is achieved.On the other hand, bullish persistence above 1.2265 would probably enhance another bullish pullback movement up to the price level of 1.2470.Trade recommendations :Conservative traders should be waiting either for another bullish pullback towards 1.2350 or another H4 bearish closure below 1.2265 as a valid SELL signal. T/P…

Pound Climbs Ahead Of UK Construction PMI Data

At 4.30 am ET Monday, UK Markit/CIPS construction PMI data is due. Economists forecast the index to fall to 44.0 in March from 52.6 in February. Ahead of the data, the pound advanced against its major rivals. The pound was worth 1.2291 against the greenback, 134.14 against the yen, 1.2010 against the franc and 0.8793 against the euro as of 4:25 am ET. The material has been provided by InstaForex Company – www.instaforex.com…

Trading recommendations for GBPUSD pair on April 6

From a comprehensive analysis, we see the first significant change and I suggest that we analyze the details. The entire past week has been squeezed in the range of 1.2280//1.2380//1.2480, where the activity dropped over time and the oscillation amplitude contracted. A cardinal change occurred only on Friday, where the compression reached its limits and was replaced by an impulse that overcame the lower limit of its aisle and there were impulses that led the quote to the area of 1.2200. In fact, this is the first significant change since the beginning of the week, and now the main question is, how stable is it? If we turn our attention to other trading instruments, for example, the euro/dollar, we will see that the dollar with all its problems with the labor market continues to strengthen, which means that investors trust it and pour their assets into it. Returning to the pound, we note that the dynamics differ from the correlating pair (EURUSD), but the strengthening of the dollar here was more significant a period earlier. Traders assume that now there is another accumulation of trading forces, where a return to historical lows is a possible scenario for the future.
As…

Trading plan for EUR/USD for April 06, 2020

Technical outlook:EUR/USD might have completed its corrective drop that had begun from 1.1150 levels. A bottom might be in place at 1.0775 on Friday and that EUR/USD might begin to rally towards 1.1500 levels. Initial resistance is seen 1.0866 levels and a break higher would confirm that bulls are back in control. Also, a push above the resistance trend line would be quite encouraging for bulls to continue further. On the flip side, if prices drop below 1.0775, the next support should come towards 1.0745 levels, which is also the fibonacci 0.786% retracement of the previous rally. The overall bullish structure remains intact until prices stay above the 1.0636 levels. Trading point of view, it remains good to hold on the long side with risk at 1.0636 respectively. Please be prepared for a marginal low below 1.0775 levels before the rally could resume.Trading plan:Remain long and add further @ 1.0745, stop @ 1.0636, target is 1.1500Good luck!The material has been provided by InstaForex Company – www.instaforex.com…