The American primaries are more important than the coronavirus?

By 05/03/2020News
Morning Stock News

Gold   1639,05
(+0,13%)

EURUSD   1,1138
( +0,05%)

DJIA   26834,50
(-0,45%)

OIL.WTI  47,45
(+0,61%)

DAX   12273,90
(+ 0,01%)

The U.S. held a “Super Tuesday” at which the choice for future candidates from the democratic party was made. The leader was Joe Biden, former vice president, who tried to participate in the presidential race more than once. The second was Bernie Sanders, one of the most “long-playing” politicians in the US Congress. He was also one of the candidates for the presidential election in 2016.


The S&P500 chart of the day

Markets were waiting for a decision, and already on Wednesday the American primaries started working. In general, we saw a positive result after such a serious decline last week. Indices went up and started to recover. DAX is growing slightly more than 1%, S&P500 and Dow Jones are almost close and adding 3%. Investors were given a chance to catch their breath and gather their thoughts. Primaries in the USA changed the news background on coronavirus and drove away the panic.


EURO

As we estimated, the overbought Euro declined slightly in the trading session on Wednesday. It is a market, so it cannot move up or down all the time. There should be some moments of correction. Surprisingly, the Euro has once again pushed back from the 200 SMA. A strong level is letting itself be known. All investors are waiting for statements from ECB. Most likely, the European Central Bank will have to take some monetary easing actions and this is likely to put pressure on Euro. It is quite possible that the Euro correction will continue and the price will try to break through the 200-day moving average once again.


Japanese Yen

It’s been a long time since we talked about Japanese Yen. Currency which has always been considered a “refuge” is on the verge of losing its authority. Japan’s economy shows very disappointing figures, the Central Bank promises twice as much as it does. Against the backdrop of the spreading coronavirus, the Japanese Yen was weakening very quickly. Now it strengthened rapidly against the weakening dollar. Does this mean that the yen still has its strength as a stable currency for saving? In the near future, we will see the answer because the rate of investment in the Japanese economy is declining. It is quite possible that after the release of all the risks to the Japanese economy due to the current situation, the Yen will weaken significantly, as local investors will have to look for new offshore investments to make profit.


What is waiting for us today?

01.30 Trade balance in Australia for January
11.00 OPEC meeting
18.00 Statement by the Governor of the Bank of England


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