US Dollar Rises on Month End Flows, Fed Announces Further Liquidity Tools

US Dollar, Euro Price Analysis News

  • US Dollar in Demand on Month and Quarter End Rebalancing
  • Fed Announces Further Liquidity Measures
  • Canadian Dollar Risks Tilted to a Downside

US Dollar: As we run adult to month and entertain end, a US Dollar in on a front feet with portfolio rebalancing approaching to yield support to a greenback. USD direct had been clear during a Tokyo overnight, that in spin saw a mini-flash pile-up in high beta currencies (AUD, NZD) overnight. However, keep in mind that markets can be rather illiquid during a Asian session. As such, concentration will be on a London repair during 4pm for FX volatility.

Federal Reserve Announcement

  • The Federal Reserve have announced a proxy repo trickery with unfamiliar executive bank, permitting them to accept USD liquidity by exchanging US treasuries. The logic behind a process is to forestall unfamiliar executive banks aggressively offloading their treasuries and other USD-denominated assets.

EUR: On a behind of a firmer US dollar, a Euro has damaged next a 1.1000. The latest Eurozone acceleration information also adds to a soothing tinge with both a title and core readings descending next consensus. That said, a latest Fed proclamation has seen a Euro rebound off misfortune levels.

CAD: We are starting to see a joining between a attribute of CAD and oil prices with a 1-week association during -0.27 from -0.45. Therefore, with oil prices remaining downbeat we say a bearish disposition on Canadian Dollar, quite opposite a some-more defensive banking such as a Japanese Yen after a Japanese mercantile year end. (Correlation Matrix)

US Dollar Rises on Month End Flows, Fed Announces Further Liquidity Tools - US Market Open

Source: Refinitiv, DailyFX

Economic Calendar (31/03/20)

US Dollar Rises on Month End Flows, Fed Announces Further Liquidity Tools - US Market Open

Source: DailyFX,

WHAT’S DRIVING MARKETS TODAY

  1. British Pound (GBP) Latest: GBP/USD and FTSE 100 Rally Look Vulnerable by Nick Cawley, Market Analyst
  2. DAX 30, Euro Stoxx 50: Bear Market Rally Leaves Global Markets during Risk of Bull Trap” by Justin McQueen, Market Analyst
  3. Gold Price May Need to Digest, though Looks Broadly Bullish by Paul Robinson, Market Analyst

— Written by Justin McQueen, Market Analyst

Follow Justin on Twitter @JMcQueenFX

Consumer Confidence Dives to 2017 Lows on Covid-19, USD Gyrates

Consumer Confidence Sinks to Lowest Level Since 2017: Talking Points

  • Consumer Confidence hits lowest indicate given Jul 2017
  • Virus fears drag down view as retrogression fears accelerate
  • The US Dollar shifted temporarily aloft on a recover

US consumer certainty sank for a month of Mar according to a Conference Board, entrance in during 120.0 from 132.6. The downbeat figure represents a lowest turn for a index given 2017. The US Dollar ticked adult modestly as a news crossed a wires, though fast gave a gains. Greenback strength appears stirred to continue as a downbeat figure injects further worry into a opinion for a US economy.

US Dollar (1-Min Chart)

US DOllar Chart

Source: IG Charts

USD Forecast
USD Forecast

Covid-19 worries were obliged for a bulk of a decrease in a index as a pathogen continues a widespread by a United States. The benefaction conditions index, representing business and pursuit marketplace conditions, shifted down to 167.7 from 169.3 a month prior. Senior Director of Economic Indicators during The Conference Board suggested that March’s change reduce in certainty is expected to continue as a pointy pierce reduce “is some-more in line with a serious contraction”.

US Consumer Confidence during 2017 Levels on Virus Fears

Consumer Confidence Covid-19

Source: Bloomberg

Along with consumer certainty expelled this morning, markets will be focusing on tomorrows ISM production total for Mar and on a rarely expected non-farm payrolls news due out Friday morning. Analysts are awaiting a detriment of 100k jobs for a month of Mar that would be a steepest dump given 2010.

DAX 30 Price Outlook: Technical Traders Look to Overcome Resistance

DAX 30 Forecast:

DAX 30 Price Outlook: Technical Traders Look to Overcome Resistance

After closely following technical developments on a DAX 30 draft for months, a sudden and serious decrease that occurred over a final thirty days was intolerable to watch. Prior to a crash, poignant cost developments occurred in weeks or months – not minutes. However, given a rare elemental themes during play it is rather unsurprising – in hindsight – that sensitivity spiked, and cost fell lower, nonetheless a gait of declines stays truly remarkable.

Nasdaq 100, DAX 30, Nikkei 225 Technical Forecasts

Nevertheless, new cost movement on a DAX 30 and other equity indices has displayed a grade of normalcy that a marketplace has not enjoyed given mid-February. Consequently, technical breaks might need some-more time to manifest than they did in a final few weeks and charting a levels during play might emanate opportunities for a operation of trade styles. Still, sensitivity stays towering and a forlorn mercantile hazard of coronavirus will see doubt insist which, in turn, creates a formidable backdrop for harboring directional biases.

DAX 30 Price Chart: Daily Time Frame (October 2017 – Mar 2020)

DAX 30 cost draft daily

That being said, a DAX 30 cost draft stays one of my favorites from a technical viewpoint and highlighting vital levels might infer useful when looking to gain on appealing opportunities from a risk-reward standpoint. To that end, new cost movement reveals a stream try during a liberation has stalled out narrowly underneath a trendline imagining from a Dec 2018 lows.

For a time being, it seems this area has turn an early separator to a delay aloft and topping it might concede bulls to aim successive insurgency around a rising trendline from 2011 – now around 11,100. Critically, a poignant opening exists directly north of a turn that might concede for a discerning swell aloft if risk ardour continues and technical traders demeanour to gain on a open air.

Conversely, a lapse of risk hatred might see a DAX retest support underneath – namely a trendline circuitously that traces a start to 2009. Since cost movement around a turn has turn rather messy, deliberation a probable section of support from 9,360 to 9,530 might be some-more suitable than a singular mark. Secondary support will demeanour to reside during 8,000 and has effectively turn a “line in a sand” for warding off serve losses. If crossed, sellers might demeanour to vigour cost lower. In a meantime, follow @PeterHanksFXon Twitter for updates and analysis.

–Written by Peter Hanks, Junior Analyst for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

Hong Kong Retail Sales Decline For Thirteenth Month

Hong Kong’s sell sales fell for a thirteenth month in a quarrel in January, total from a Census and Statistics Department showed on Tuesday.

The sell sales volume declined neatly by 46.7 percent year-on-year in February, following a 23.1 percent diminution in January.

The value of sell sales decreased 44.0 percent annually in February, following a 21.5 percent tumble in a preceding month.

Sales value of jewelry, watches and clocks, and profitable gifts declined 58.6 percent annually in Feb and those of clothing, shoes and associated products, and dialect stores fell by 48.8 percent and 41.4 percent, respectively.

” The year-on-year tumble in sell sales volume widened neatly in Feb and was a steepest for a singular month on record,” a supervision orator said.

“This especially reflected a complicated blow to tourism- and consumption-related activities dealt by COVID-19, yet a distortions from a timing of a Lunar New Year also contributed.”

Oil Rebounds As US, Russia Agree To Talk

Oil prices rebounded from 18-year lows on Tuesday after U.S. President Donald Trump and Russian President Vladimir Putin concluded to talks directed during addressing sensitivity in a tellurian oil markets.

Trump and Putin concluded during a phone call on Monday to have their tip appetite officials plead slumping tellurian oil markets, a Kremlin said.

“Opinions on a stream state of tellurian oil markets were exchanged. It was concluded there would be Russo-American consultations about this by a ministers of energy.”

Benchmark Brent wanton rallied 2.9 percent to $27.19 a barrel, after carrying sealed during a lowest turn Nov 2002 a prior day.

U.S. wanton futures were adult as most as 5.7 percent during $21.23 a barrel, after settling during their lowest turn given Feb 2002 on Monday.

Energy direct is approaching to dump almost as it is now feared that a tellurian coronavirus shutdown could final months.

The universe economy, with a expected difference of India and China, will go into retrogression this year with a expected detriment of trillions of dollars of tellurian income due to a coronavirus pandemic, according to a latest UN trade report.

The mercantile fallout from COVID-19 is expected to get “much worse” before it gets improved for some 6 billion people vital in building economies, a UN pronounced and appealed for a $2.5 trillion rescue package to boost their resilience to serve hardship.