ZuluTrade Blog

IMF announces $50 billion package to deal with coronavirus outbreak!

Market View | Thursday, March 5, 2020 12:24 PM GMT

Following Central Banks’ interest rate cuts, IMF announced a $50 billion package while the World Bank $12bn for supporting countries to confront the coronavirus spread. However, the markets have mixed reactions as virus cases are increasing and the death toll is getting higher day by day.

In the Asian Market, the Shanghai Stock Exchange is leading the recovery as closed +1.99% as well as NIKKEI 225 and KOSPI Composite ended higher +1.09% and +1.26% respectively. Traders appreciate China’s efforts so far, as they have given 15.9bn while South Korea confirmed a $9.9bn budget to fight the COVID-19.  Let’s not forget that S. Korea is the second country that has the highest number of patients after China. Furthermore, China reported that there is a decrease in confirmed cases for 3 consecutive days.

Most of the EU indices have lost their early gains as Traders have most probably already discounted the stimulus from central banks and they are already anticipating the next moves. Naturally, everyone believes that ECB will follow the rest central banks to cut its interest rate next week.  GER30, FRA40, and UK100 have losses around -1% and the price action looks really bearish in intraday.

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Obviously, US open points lower as the futures market is already in red for SP500. On the other hand, XAUUSD still remains strong and it's ready to break out from the 1650 level. USOil is flirting with a major intraday support at 46.43 while RSI remains below 30 level excessively (potential bearish indication).

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Heading to the forex market, EURUSD regains its profits today and is heading to a major retested trendline. Level 1.2 is a strong psychological resistance. The Cable is having a similar bullish action and its close to test a major mid-term declining trendline. On the other hand, USDJPY is testing recent lows and looks weak.

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Today’s economic calendar includes the following news:

UnitedKingdom - BoE's Governor Carney speech

Canada - BoC's Governor Poloz speech


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