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Shaken nerves, rattled brains
By: Andria Pichidi
Stocks were boosted over the $2 tln relief bill but a last-minute snag threat from Senator Sanders to delay the $2 tln relief package revived uncertainties (if the four GOP senators didn’t give up their opposition to a number of items, including adding an extra $600 per week to unemployment insurance, as well as other social programs.)
USA30: knocked over 800 points initially, but closed lower at 21,175.
USA500 down by 180 points – closed at 2,467.
Treasuries were richer, however, even with the strong risk tone as caution and demand for safety support. The late slump in stocks added to the bid.
House expected to sign the USD 2 trillion support package off tomorrow
Massive bond issuances GLOBALLY in underway – Central banks on stand buy to snap up more and more assets
EU: officials are paving the way for ESM loans and the possible revival of the OMT program, although there is no agreement on “Corona bonds” as joint issuance yet.
JPY UP as risk aversion returns!
YEN retest S2 at 110.30, S3 at 109.77
EUR – Retests 1.09 (midline of 9-months channel) -PP: 1.0845 S1: 1.0800 and R: 1.0928.
GBP – A bit choppy at the confluence of PP, 23.6% Fib and 50-hour EMA (1.1830), R1 at 1.1875, S 1.1770
AUD – up from S1 at 0.5900, PP at 0.5990
CAD – above the 20H-SMA, under PP at 1.4282 – S1 1.4083, R1 at 1.4388
CHF – close to S1 at 0.9725, S2 at 0.9700
NZD at 0.5830
BTC – holds below $7,000 – trades at $6,615 (below PP)
GOLD – pullback continues – S: 1587 (20-day SMA),
Oil at $24.12
TODAY: EU leaders who are scheduled to hold a videoconference on Thursday night. All eyes are on the BoE, the German consumer confidence, the weekly US jobless claims report, and especially amid this fight on Capitol Hill over unemployment insurance. This week’s report is expected to be highly infected by the coronavirus. Advance US February wholesale and retail inventory figures are also on tap. The US third look at Q4 GDP will be a sad reminder of how well the economy was doing before the virus hit. We expect an unchanged 2.1% pace.
Biggest (FX) Mover @ (00:00 GMT) CADJPY (-1.19%) – drifted from 78.30 to 77.40 (midway of PP and S1). Broke this week’s up channel and below 20-hour SMA, MA’s flat intraday suggesting consolidation, but dip in the daily chart. RSI (46) negative, MACD histogram & signal line falling sloping to 0, Stochastics moving lower. – H1 ATR 0.22.
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