The President of the USA addressed his country. He asked the FDA to accelerate the agreement on vaccine development and said that there are a couple of therapies that have shown excellent results. Furthermore there is a cure that has shown no less good results against coronavirus. And this is another war, now on the medical front… but we’ll win it too!
Chart of the Day EUR/USD
On this positive + huge overselling, the stock markets bounced back on Thursday. But after spring comes summer, and after Friday is the weekend. Even Donald Trump will not predict how much the situation will get worse during Saturday and Sunday. Therefore, traders need to be as careful as possible when carrying volatile instruments, such as oil, over the weekend.
Speaking of oil! After the terrible fall on Wednesday, the black gold market on Thursday showed no less strong backward movement. Speculators have played out and are driving oil 20-25% a day in any direction.
Nothing has fundamentally changed. Really strong support oil can only get on the new OPEC+ deal. The problem of an ordinary trader is that he cannot know anything about behind-the-scenes agreements, which certainly go on between representatives of Russia and the oil cartel.
After a totally illogical carry to 1.15, the EUR fell very quickly to a new low of 3.5 years. The only question is why it did not happen much earlier. The economic situation in Eurozone even before the crisis was extremely difficult. It is much worse now. The main difference from Great Britain, USA or Japan is that the EU countries are working in their own direction, not acting as a united front against a common enemy.
It was not for nothing that we paid attention of our traders to the first cryptocurrency for 3 days in a row. The main message in previous mailings was that BTC was actually the only asset that did not fall against the dollar this week. On Thursday, this situation led to an explosive growth. Bitcoin grew by 15% at once, shaming the skeptics who were waiting for the first crypto at levels of 2-3 thousand dollars.
What’s waiting for us today?
02.30 Decision of the People’s Bank of China on interest rate
13.30 Canadian retail sales in January
15.00 U.S. secondary housing market sales for February
Important Notes on This Publication:
The content of this publication is for general information purposes only. In this context, it is neither an individual investment recommendation or advice nor an offer to purchase or sell securities or other financial products. The content in question and all the information contained therein do not in any way replace individual investor- or investment-oriented advice. No reliable forecast or indication for the future is possible with respect to any presentation or information on the present or past performance of the relevant underlying assets. All information and data presented in this publication are based on reliable sources. However, Bernstein Bank does not guarantee that the information and data contained in this publication is up-to-date, correct and complete. Securities traded on the financial markets are subject to price fluctuations. A contract for difference (CFD) is also a financial instrument with leverage effect. Against this backdrop, CFD trading involves a high risk up to the point of total loss and may not be suitable for all investors. Therefore, make sure that you have fully understood all the correlating risks. If necessary, ask for independent advice.