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Market View

COVID-19 hits Markets hard

Thursday, March 12, 2020 12:43 PM GMT

The World Health Organization (WHO) declared COVID-19 a pandemic yesterday as the coronavirus has infected more than 120.000 people while the death toll reached 4000 in 114 countries. Also, US President Trump announced that he is temporarily banning travel from Europe for at least 1 month. Airline and Traver services stocks are suffering from big losses at the EU market opening (Lufthansa -9.70%, Airbus -8.09%, TUI -11.6%, etc).

Following the generic bias, Asian Market tanked with NIKKEI -4.41%, KOSPI -3.87%, and the Shanghai Stock Exchange -1.52%. Obviously positive economic data are not able to hold the worldwide sell-off.  As said EU markets are sinking as GER30 loses -5.56%, FRA40 -5.76%, EU50 -5.86%, etc. Italy applied even harder restrictions and declared national lockdown except for supermarkets and pharmacies. Most EU countries have taken similar but less tight measures.

Reviewing the forex market, the US dollar is gaining ground against EUR, GBP, and AUS. EURUSD is confirming our yesterday’s potential scenario and is heading to the 1.12 zone. The cable is ready to violate recent lows at 1.274 and is approaching the lower side of the declining channel (daily chart).  XAUUSD seems to be “exhausted” and starts retracing to the downside. The commodity verified the negative RSI divergence and is heading to 1611 resistance.

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EURUSD Hourly chart

GBPUSD Daily chart

XAUUSD Daily chart

Checking the ZuluTrade’s Traders Sentiment, the majority is selling GBPUSD and USDJPY while there is balance with EURUSD, GBPJPY, and USDCAD.

Today’s economic calendar includes the following news:
EuropeanMonetaryUnion - ECB Deposit Rate Decision
EuropeanMonetaryUnion - ECB Monetary Policy Statement and Press Conference

Disclaimer

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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