Yesterday was a tough trading day for most EU and US indices as coronavirus is spreading fast around the globe. Dow Jones Industrial lost 3.58% while NAS100 and SP500 3.10% and 3.39% respectively. Mike Pence, US Vice President in charge of administration’s coronavirus Task Force, has reported there was an increase in deaths to 12 while US Senate confirmed $8.3bn for fighting the COVID-19.
Consequently, today, Asian markets dropped sharply and lost a major part of their recent gains. Shanghai Stock Exchange fell 1.21%, KOSPI composite -2.16% and NIKKEI -2.72%. Adding to this, S&P Global Ratings decreased its forecast for China’s growth to 4.8% for 2020.
EU Markets go with the global flow and they are currently recording major losses and the weekly gains are almost wiped out. GER30 and FRA40 are down by -2.3% while UK100 holds better with -0.4%. No need to repeat that coronavirus is the major reason for this sharp decline. Technically, GER30 is testing recent lows (3/2), FRA40 is near Monday’s low while UK100 is bouncing from the 78.6% Fibonacci level.
60m charts
GER30
FRA40
UK100
Reviewing the forex markets, US dollar remains weak against most currencies. EURUSD did the upside break out and move above the psychological level 1.2 as mentioned yesterday. GBPUSD, likewise, violated the declining channel to the upside and heading to the 1.30 area. USDJPY has an aggressive drop losing the daily 78.6% Fibonacci level. USDCHF is already oversold on daily RSI and still looks very heavy.
60m Charts
EURUSD
GBPUSD
USDJPY
USDCHF
Today’s economic calendar includes the following news:
Canada – Net Change in Employment (Feb)
UnitedStates – Average Hourly Earnings (YoY) (Feb)
Canada – Unemployment Rate (Feb)
UnitedStates – Nonfarm Payrolls (Feb)
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