US Market Wrap

Not surprisingly, it was a rough quarter for US equity markets. So bad, in fact, they posted their worst quarterly performance since 1987.

The Dow dropped 23.2% so far this year, while the SPX is off 20%. While these numbers are poor, I like to remind people that both of these markets posted near 30% gains last year. So the damage, while bad, is not that bad.

The number of coronavirus cases topped 838,000 globally by Tuesday, with more than 177,000 in the U.S. alone. There was also a White House comment that suggested, America could be facing over 100,000 deaths from the virus which is a concern, to say the least.

With equities taking a bit of a break from the rampant selling, there are still some worries about the price of WTI which is currently trading at the lows of $20 and is not bouncing.

Today’s Agenda

The EUR/USD will again be in focus today as we get what I think will be some very interesting data over the course of the session.

German Manufacturing PMI is due for release and as yet, the expectations are for this number to hold up OK – for now. The same for the UK and their PMI reading, so there might not be blood in the water just yet for the GBP/USD.

Later in the session, we get a preview of the US jobs report which is expected to be a messy one. So far the analysts are predicting a fall of -150K jobs last month. This is the ADP number and if the number is below that level, this could lead to a big sell-off.

Forex Signal Update

The FX Leaders Team had two wins from three signals in what was a strong month for the boys.

Make sure you follow our live signals as the opportunities will keep on rolling in April.

GBP/USD – Active Signal

We are currently short the GBP/USD, however, volatility has been greatly reduced so far this week. The 1.2500 level, is holding up as key resistance at the moment and this pair could be ripe for further selling.

SPX – Watching

The SPX is perilously placed at the moment and this could be a clear pullback when we look back in a few days. With the jobs numbers coming out on Friday, I still think there is room for more downside.

Cryptocurrency Update

BTC remains between the $7,000 level above and $6,000 below as the holding pattern continues.

As has been the case, we watch and wait. Let’s remember, that Bitcoin has been trading relatively in-sync with the broader markets at the moment. So if we do see some further downside, that would mean a break of that lower level.