Welcome to this week’s Market Blast Fundamentals where we will look at USDCHF, EURGBP, the Nikkei, the DAX, USDCAD, and Brent Crude (UK Oil).
New cases of COVID-19 in the United States and China has lowered the price of WTI and Brent Crude which opened this morning with a weekend gap.
With economies trying to return to normal, this news, along with last week’s comments from Jerome Powell, have put demand for Crude Oil in question.
Of course, this has has a direct effect on CAD sending USDCAD higher.
Any better news now on Coronavirus will help Crude and CAD but watch for Crude Oil Inventories on Wednesday and Canadian Retail Sales figures Friday.
As well, Jerome Powell will be speaking three times this week so let’s see if he affects the markets again.
This news has affected all stock indices as well with the DAX, for example, dropping back below the 200 Day Moving Average.
The Nikkei is in the same situation but watch for tomorrow’s Interest Rate decision from the Bank of Japan.
We see as well, that Boris Johnson and Ursula von Der Leyen — president of the European Union — will be meeting today to work on a Brexit compromise so watch for price action on GBP and EUR pairs.
Also, watch for lots of UK Economic news this week including an Interest Rate decision.
And, finally, watch for volatility on CHF pairs with an Interest Rate decision Thursday.
That’s all for now. Happy trading with Valutrades and we will see you tomorrow.
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Disclaimer:
The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice. If such information is acted upon by you then this should be solely at your discretion and Valutrades will not be held accountable in any way.
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