Welcome to this week’s Market Blast Fundamentals where we will look at Coronavirus, USDMXN, USDCAD, US Oil (WTI), Gold (XAUUSD), AUS200, and the IBEX (ES35).
The outlook is bleak on Daily charts on the global stock indices with weekend gaps to the downside on most but with the Spanish IBEX trying to recover some ground.
The largest gap seems to be on the Australian 200 Index and we see some recovery this morning.
At this point, government stimuli are not helping and recovery will likely be based on news on a Coronavirus vaccine.
Looking at the USD Majors, we see dollar strength based on the sell-off of equities.
Also, the sell-off of gold reserves is driving prices lower to the key level of $1480.
The Canadian Dollar passed $1.46 with the price of oil dropping below $21 last week.
This will not change much until we seem some global demand for oil in transportation and manufacturing.
Keep an eye on your favourite economic calendar but be aware that some events may change, especially interest rate decisions.
For example, the Bank of Mexico is due this Thursday but please confirm this before attempting a trade even though the Mexican Peso is at an all time low.
And, don’t forget to register for tomorrow’s Valutrades Gold webinar.
That’s all for now. Happy trading with Valutrades and we will see you tomorrow.
CFDs and FX are leveraged products and your capital may be at risk.
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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