US Market Wrap

It’s been a story of the central banks over the last 24 hours as the key policymakers from around the globe, step up the fight to save the economy from collapse.

Today the FOMC jumped early and slashed key interest rates to nearly zero, while the RBNZ took their cash rate to 0.25%. The Fed also pumped in a $700 billion bond-buying program to try and appease the market. The BOJ has also called an emergency meeting ahead of one that was scheduled for later in the week.

So far that has only added to the fear in the streets as markets have continued to plunge lower in Asian trade with the AUD/USD tumbling and the USD/JPY doing the same.

The Dow and SPX jumped 10% on Friday after US President Trump took action to try and address the virus in the US by declaring a state of emergency. But it appears, those gains might be at risk today after yet another day of blood in the streets for financial markets.

Today’s Agenda

We’ve already seen some very soft data out of China this morning with Industrial Production getting hit badly as we might have expected it would.

Clearly, this week is still all about the fallout from the coronavirus and the response from central banks and also policymakers in Government.

There is no doubt, there will be some economic fallout from what is happening as countries around the world close their borders and even go into various states of lockdown.

Clearly the world will move on from this crisis at some point, it’s just a matter of how much collateral damage there is in the short-term.

Forex Signal Update

The FX Leaders Team finished with 8 wins from 11 signals last week for a 73% strike rate in what was a solid performance in wild conditions.

EUR/JPY – Active Signal

The EUR/JPY is looking like a good short candidate as money flows into the JPY and away from the risk of the EUR. We are short looking for an extended move lower.

SPX – Watching

The SPX might have bounced off the 2,400 level, but it looks like there will be more pain ahead for financial markets today after the FOMC announcement shocked markets.

Cryptocurrency Update

BTC appears to have stemmed the bleeding at the $5,000 level for the time being and all pushes higher are getting sold into once again.

If that $5,000 mark breaks we could see some more selling which would take the losses to over -50%.

There doesn’t appear to be a lot of interest in risk at the moment and Bitcoin and the other cryptos will likely be under more pressure in the next week.