Markets have found immunity from the virus, but for how long…

By 23/01/2020News
Morning Stock News

Gold   1558,53
(-0,02%)

EURUSD   1,1084
( -0,07%)

DJIA   29074,50
(-0,22%)

OIL.WTI  55,65
(-0,71%)

DAX   13488,14
(+ 0,01%)

China is struggling hard with the coronavirus. Streets are treated with special means, people at airports are thoroughly checked, patients are immediately quarantined. Optimism in the Chinese government and the announcement of a clear plan to contain the virus outbreak have calmed the world public and become a small driver for the stock market. Chinese stock indices have recovered from this year’s low and pulled the rest of the indices with them.


USD/CAD chart of the day


During the European session, the DAX updated its historical high at 13642, and afterwards, in the U.S. session, the S&P500 repeated the same thing, reaching 3340. Overall, the markets are quickly turning optimistic as soon as they see the threat weakening.
The major crypto currencies grew mainly yesterday on the basis of positive news from a number of central banks of Western central banks as well as the Bank of Japan. It is expected that the group will start working soon to discuss possible creation of own crypto currencies as a payment instrument. The total capitalization of the cryptomarket reached $241bn.

CANADIAN DOLLAR

As expected, the Central Bank of Canada kept its key interest rate at 1.75%. It is very important that the phrase, the rates are “appropriate”, has been removed from the statement, which indicates that the rate is likely to change in the future. The Bank of Canada statement proved to be more restrained than expected. The result was the growth of USD/CAD pair to 1.3150 within a few hours.

EURO

Already today we are waiting for a decision on the interest rate of the European Central Bank, and after the speech of Christine Lagarde, who recently became head of the ECB. The ECB is not expected to change its monetary policy. Data from the December meeting indicate that the EU economy is slowing down and there are no signs of a possible recovery. Therefore no surprises are expected from this meeting. Euro trades below 1.11 as well as below 50, 100 and 200 moving averages, which increases bearish sentiment. If ECB statements are too cautious, Euro might well try to reach the psychological level at 1.10.

What is waiting for us today?

00.50 Japan Total Trade Balance for December
01.30 Unemployment rate in Australia for December
13.45 ECB decision on interest rate
14.30 ECB press conference


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