ZuluTrade Blog

Market Volatility is here to stay...

Market View | Wednesday, March 18, 2020 10:37 AM GMT

Volatility is back and will remain significant as long as markets are not able to calm down due to the COVID-19. Yesterday, CNBC published an article “ Trump seeks stimulus package potentially worth more than $1 trillion, including direct payments to Americans”, added ““It’s going to be big, it’s going to be bold,” as President Trump said. Instantly, US Indices rallied to the upside and closed with big profits (more than 5%). However, today’s opening looks totally different. The pre-opening is bearish as all indices having major losses. A chart is a thousand words.

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SP500 60m chart

Asian Markets lost their initial gains and ended with heavy losses. Even though China, Japan, and S. Korea have contained the coronavirus successfully, investors are heavily concerned about the generic consequences on growth due to the pandemic. As said EU opening will be in deep red. Italy and Spain still remain in catholic lockdown announcing new deaths and infections. EU has already closed its borders while Ursula von der Leyen, European Commission President, tweeted yesterday:

Reviewing the forex market, EURUSD and GBPUSD are currently neutral as both recorded big losses yesterday. EURUSD broke out its range to the downside while the next support is located at 78.6% Fibonacci level. The cable is still heading to 1.196, the low of 9/3. USDJPY recovered its drawdown and consolidates around 107 area and still moves within the rising channel.

EURUSD 240m chart

GBPUSD Daily chart

USDJPY 240m chart

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

Today’s economic calendar includes the following news:

Canada - BoC Consumer Price Index Core (YoY) (Feb)
UnitedStates - Fed Interest Rate Decision
UnitedStates - FOMC Press Conference
NewZealand - Gross Domestic Product (QoQ) (Q4)
Japan - BoJ Monetary Policy Meeting Minutes


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