ZuluTrade Blog

Markets open higher as EU is closing its borders

Market View | Tuesday, March 17, 2020 10:59 AM GMT

EU decided to close its external borders for 30 days starting from today to fight the coronavirus spread as the EU is the heart of the outbreak. This was announced by Emmanuel Macron, President of France, during his national speech through television. He added “We are at war, certainly a health war… We are not fighting against an army or against another nation. But the enemy is there, invisible, elusive, advancing. And this requires our general mobilisation.".

Asian market closed mixed as NIKKEI and Hang Seng ended in green while Shanghai Stock Exchange and KOSPI in red. BOJ announced that it will take all the necessary measures to secure smooth market functioning. On the other hand, Japan’s Industrial production increased higher than expected (+1%) while Goldman Sachs is decreasing its forecast for China’s GDP to 3% from the previous 5.5%.

As said, EU markets have opened higher as investors have welcomed EU’s decision to take more aggressive action for containing the COVID-19. GER30 is up to 1.11%, FRA40 +1.5%, IBEX +3.9% while UK100 gains +0.44%. Italy is heavily suffering by the coronavirus impact as the death toll increased by 349 yesterday. Spain and France announced additional measures to delay the spread. Likewise, the US futures market indicates a positive opening.

Heading to the forex market, US dollar regains ground against its counterparts as EURUSD is lower -0.5%, GBPUSD -0.36%, AUDUSD – 0.6%, NZDUSD -0,22%. Reviewing the charts, EURUSD still moves inside the range (1.105 – 1.122) as failed again to violate the upper side of it. It looks that it's heading back to 1.105. Cable is at a make or break level, 1.2195. If the level fails to hold, then the next support is located at 1.196. USDJPY verified the rising channel and is trying to rebound to the upside.

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EURUSD 60m chart

GBPUSD daily chart

USDJPY 240m chart

Checking the ZuluTrade’s Traders Sentiment, the community is buying EURUSD, USDCHF and USDCAD while is selling GBPUSD and USDJPY.


Today’s economic calendar includes the following news:

Germany - ZEW Survey - Economic Sentiment (Mar)

UnitedStates - Retail Sales Control Group (Feb)


The views expressed do not constitute investment or any other advice /recommendation /suggestion and are subject to change. Reliance upon information in this material is at the sole discretion of the reader. Opinions expressed in the report do not represent the opinion of ZuluTrade Social Trading Platform and do not constitute an offer or invitation to anyone to invest or trade.



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