ECB in Focus

Forex Signals Brief for Apr 30: ECB in Focus

Posted Thursday, April 30, 2020 by
Rowan Crosby • 2 min read

US Market Wrap

Despite some very average data markets continued to tick higher yesterday.

US GDP came out below expectation for a very poor reading of -4.8%, however, it was somewhat overshadowed by news that Gilead, a US biotech firm, was making progress on a COVID-19 treatment. While it’s early days and not a vaccine, the results were promising.

At the same time, much of the attention was on the FOMC. Jerome Powell was relatively circumspect about how the crisis was playing out but reiterated that there was still more to do. He also wasn’t too worried about the mounting levels of debt and appears happy to keep throwing the kitchen sink at the problem.

The SPX ticked higher, thanks to some strength in tech names while the Greenback is still within arms reach of the 100 level on the US Dollar Index. 


The Data Agenda

Today we will hear from the ECB after the central bank holds a virtual policy meeting to discuss what measure it needs to take to help support the EU economy during these unprecedented times.

At the last meeting in March, the ECB rolled out a €750 billion Pandemic Emergency Purchase Program, which comes on the back of their other programs. They are also doing their best to make sure lending to businesses keeps flowing as we know this is the lifeblood of any economy.

So the question today for traders of the EUR/USD is whether or not the central bank needs to do more? It does appear they have thrown everything they can at the situation. But the odds would suggest that the ECB will stay put for now, while they hope for something in the form of fiscal stimulus.



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Gold – Pending Signal

The GOLD trade remains an interesting one, as price is still above the $1700 level. We’ve also seen a series of higher lows on the way up. We remain bullish for the time being, while that key level holds.

Gold – 240min.


SPX – Watching

The SPX has made a big push and is now through that key 2,900 resistance level. For me, that is a huge bullish sign and I feel a lot more confident about getting long above that level.

SPX – 240min.


Cryptocurrency Update

BTC has made its run and is surging towards the $9,000 level with a 15% jump on the session. $8,000 had been acting as a minor resistance level, but price broke through easily and looks like it wants to keep going.

With the block reward halving just 13 days away, it looks like the bulls are pressing their case early and hoping for further upside ahead.

At the same time, there is a distinct risk-on tone across broader markest at the moment and no doubt that is playing a part.

BTC – 240min.
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