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Signs of Recovery - JPY pairs bounce back!

Tuesday, March 10, 2020 12:25 PM GMT

US President Trump gave the “psychological” boost to the global markets to start erasing their heavy Monday’s losses.  Traders appreciated Trump’s announcement, that he may introduce payroll tax cut or relief as a measure to fight coronavirus economic consequences. He promised that he will provide more details today after meeting with Congressional Republicans.

Μarkets were anticipating such news by the US as they hadn’t yet announced anything significant stimulus for their economy. Naturally Asian Markets reacted positively and NIKKEI, KOSPI Composite, Hang Seng, and Shanghai Stock Exchange ended with profits. In addition, Japan is likely to provide a $10.7bn financial package for helping small enterprises without excluding the bigger companies too.  Also, we should mention that China’s President Xi visited Wuhan for the first time since infections started.

EU markets opened with strong profits with UK100 leading +4.45% and GER30 following by +2.5%, FRA40 +2.9% while Italy’s FTSE MIB gains more than 8% as suffered the most yesterday. Reviewing EU news, Italy’s and France’s Industrial production was increased by 3.7% and 1.2% respectively while Austria’s trade deficit was decreased to €258mil.  

The US futures market indicates a positive opening as SP500 is up to +3% welcoming the new fiscal stimulus from Trump. We must mention that Bill & Melinda Gates Foundation joins efforts with the Welcome Trust charity and Mastercard Impact Fund to deal with COVID-19.

JPY pairs are bouncing back after their sell-off of last days.  USDJPY is up to +2.25%, EURJPY +1.36%, GBPJPY +1.67% and AUDJPY gains +1.7%.  This means that EURUSD has lost its bullish momentum and creates a potential peak at 1.147.  EURUSD and USDJPY may have formed failure swings reviewing their daily charts.  

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EURUSD Daily

USDJPY Daily

Checking the ZuluTrade’s Traders Sentiment, the majority is buying EURUSD, while sellers prevail on GBPUSD and GBPJPY.

Today’s economic calendar includes the following news:

EuropeanMonetaryUnion - Gross Domestic Product s.a. (YoY) (Q4)

EuropeanMonetaryUnion - Gross Domestic Product s.a. (QoQ) (Q4)

 
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The views expressed do not constitute investment or any other advice /recommendation /suggestion and are subject to change. Reliance upon information in this material is at the sole discretion of the reader. Opinions expressed in the report do not represent the opinion of ZuluTrade Social Trading Platform and do not constitute an offer or invitation to anyone to invest or trade.

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