Gold 1693,50
|
EURUSD 1,0796
|
DJIA 24115
|
OIL.WTI 25,095
|
DAX 10609
|
|---|
Wednesday was almost nothing different from the last two trading days. There’s still the same tension in the world between the US and China. The struggle against the coronavirus continues and countries are doing much to get back to work and economic recovery faster.
USD/JPY
Against the backdrop of the epidemic in the U.S. securities of the pharmaceutical companies are growing very well. The news about the imminent emergence of the vaccine only warms up investors. But it is very difficult for the whole market to grow further. The S&P500 index is stuck at 2860. Only the dynamics of shares of electronics giants does not allow to fall and systematically adds 0.5-1% to each trading session on the background of a return to life after quarantine.
Euro
The euro can not yet cope with the problems of the European economy, as well as the seriously strengthening US dollar. The price of the pair EUR/USD continued its systematic downward trend down to 1.0760, which we mentioned in yesterday’s article. The Euro is almost always approaching strong levels closer to the publication of important macroeconomic statistics or news. This time the price is already close to Friday. The Euro has no strength for growth and now it will be important for the European currency to stay above the support line and keep its place in the current trading range 1.0950 – 1.0760.
Japanese Yen
The USD/JPY pair has a very good downward movement, which indicates how stable the Yen feels during a pandemic. After all, the tension between the USA and China in some way went into the hands of the Japanese currency, as it has always been considered as a refuge currency, but if the tension goes down, then this strengthening of the JPY is likely to stop. On the whole, the pair is already ripe for reversal upwards. The level of 106, at which it is now quite strong, and this reversal may begin in the coming days, considering that we are waiting for a lot of macroeconomic statistics on Friday.
Oil
On Wednesday, the data on crude oil reserves were relatively good, but they were a little late for markets. It happens that the price flies up much faster than traders get important information for making decisions. In our case, the stocks were not as good as the market thought they were. As a result, WTI oil on Wednesday is cheaper by almost 2% and trades at $24 per barrel. We still have to wait for the news on production decline and for Friday macroeconomic statistics. It is likely to go down for a slight correction to cool the bulls’ fervor.
What’s waiting for us today?
08.00 Decision on interest rate of the Bank of England
13.00 Minutes of the meeting of the Monetary Policy Committee of the Bank of England
14.30 Number of initial applications for unemployment benefits in the United States
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.