Archives of “March 2020” month

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EUR/USD looks to surpass key technical hurdles, nears 1.1100 level

  
Analysis, Forex

EUR/USD touches a session high of 1.1092

EUR/USD D1 02-03

The pair is continuing its unrelenting move higher over the past week or so as price now surpasses the 100-day MA (red line) @ 1.1056 and is looking to challenge the 200-day MA (blue line) @ 1.1098.
Break above that latter and the bias in the pair will turn to be more bullish and that could set up potential move back towards 1.1200 and the January high of 1.1239 next.
Month-end flows and unwinding in carry trades (euro as a funding currency) were among the many reasons helping the euro to climb in the past week but a new theme is also emerging in that the dollar is losing attractiveness amid the deterioration in yields.
That and the better market mood today is weighing on the greenback a little but so far, the technical momentum still isn’t really stopping for EUR/USD.
Watch out for a crack above 1.1100 as that may trigger a quick run higher towards 1.1200.

France says virus economic impact will be much bigger than the 0.1% forecast initially

  
  Analysis
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Comments by French finance minister, Bruno Le Maire

  • It is too early to provide a new growth forecast
  • There will be concerted action by the government to support the economy
  • Says G7 finance ministers will speak this week to coordinate efforts
The headline may not sound too pleasant but the initial 0.1% forecast was a bit unrealistic anyway. In any case, more talk of coordinated action by governments across the globe to bolster the economy is definitely a welcome signal for risk to start the week.

Global central bank co-ordinated interest rate cut coming on Wednesday 4 March

  
  Analysis
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A coordinated global interest rate cut by the top central banks will happen this Wednesday, March 4.

  • So says economist for the U.S. bank lobby Bill Nelson, chief economist at the Bank Policy Institute
Nelson, formerly at the Federal Reserve (worked on the Fed’s responses to the 2007-2008 financial crisis):
  • It will happen before the U.S. stock market opens, either 7 a.m. or 8 a.m. ET (1200 or 1300 GMT)
  • It will be half a percentage point at least
  • “The only way to get a positive market reaction is to deliver more than expected”
  • will include “forward guidance”
Here is the link for more: Don’t keep your powder dry
A coordinated global interest rate cut by the top central banks will happen this Wednesday, March 4.
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