ZuluTrade Blog

"Everything is on the table"

Market View | Monday, March 23, 2020 1:24 PM GMT

This phrase describes perfectly the situation on the markets, “Everything is on the table”, as James Bullard said in a telephone interview on Sunday. Additionally, he predicted that the US unemployment rate may reach 30% in Q2 as GDP is falling by 50% due to the coronavirus restrictions. Neel Kashkari added that the central bank has many tools as well as “infinity amount of cash” to support the US economy.

Donald Trump, US President tweeted yesterday:

Coronavirus cases are increasing all over the US and one state after the other is ordering their citizens to stay at home. Currently, NY, California, Connecticut, NJ and recently Ohio, Louisiana, Delaware, and Philadelphia raise their status-alert.  The infections hit 35k while total deaths exceeded 400.

Most Asian markets ended negative but NIKKEI closed with-profits +2,02% as Japan is planning to loosen their lockdown measures as some business and schools are gradually opening last days.  Nifty 50 had a major sell-off (-12,14%).

As expected EU markets are moving in negative territory however most indices have trimmed their losses as well as closed their today’s early gaps. No need to mention that Italy, Spain, France, and UK announced a significant number of new deaths due to COVID-19. Lothar Wieler, Head od the Robert Koch Institute, said “We are seeing signs that the exponential growth curve is flattening off slightly, but I will only be able to confirm this trend definitively on Wednesday”.

Reviewing the forex market, EURUSD is moving within a tight range of around 1,065 – 1,075 while it has formed a triangle. USDJPY is still rising within the channel that we are following for a couple of weeks. AUDUSD bounced to the upside as RSI being oversold below 30 level on the monthly timeframe.

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EURUSD 60m chart

USDJPY 240m chart

AUDUSD Monthly chart

USOil failed to break out the 27 level and its back to 20. Its currently forming a double bottom formation. XAUUSD consolidates within 1480 and 1510 zone.

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USOil 240m chart

XAUUSD 240m chart

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

Today’s economic calendar includes the following news:

EuropeanMonetaryUnion - Markit PMI Composite (Mar)

UnitedKingdom - Markit Services PMI (Mar)


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