Daily Market Updates 15.04.2020
Tuesday 15.04.2020
Asian Session
International Monetary Fund noted that the global economy will suffer it’s worst year since the depression of 1930 due to the pandemic and the economy might fall by 3% for an amount of $9 trillion dollars output loss, as a result Asian stocks went lower today and uncertainty remains at high levels. Shanghai index fell by 0.42%, while Hong Kong index declined by 0.7%. Japan index lost 0.4%, South Korea Kospi index remains flat. and Australian index fell by 0.4%. Although that China reopened its economy, it will take months for its output to come back in normal conditions.
| Asian Stock | Closed |
| Nikkei | -0.4% |
| Hong Kong HSI | -0.7% |
| China Shanghai SSE | -0.42% |
| Kospi – South Korea | – |
US Stocks
US stocks index on futures went higher yesterday amid hopes that the US will reopen the economy once the pandemic eases. Today index began the day to the opposite site by declining 0.52% of about 130 points, while SP500 futures loosing around 0.5% and Nasdaq index minus 0.49%. Yesterday Dow Jones increased by 2.4% while SP500 went up by 3%. All eyes turn today on US retail sales a measurement of consumers confidence and its expected to see the index falling by 8% as analysts estimate.
| US Stocks | Closed |
| DOW | -0.52% |
| S&P500 | -0.5% |
| NASDAQ | -0.49% |
Major Currencies
Pound dollar bounced up yesterday from 1.25 to 1.26 and remained stronger than dollar. The pair is moving above Ichimoku cloud indicating a bullish momentum. Strong support level is at 1.25 before resuming to the upside reaching 1.275. Dollar yen is traded at 107.02 and has a descending momentum the recent weeks. A retest at 107.35 is possible and the continue to the downside at 105.8. IF the price break above 108 may go further to 108.7. It would not be a surprise if euro dollar reaches 1.10 with next resistance at 1.10. After the pair jumped yesterday at 1.098 today’s pullback at 1.093 do not indicates reversal yet. The pair is traded on an upward channel on hourly time frame. If price break below the down trendline of the channel we may see support zone around 1.089. Today’s US retail sales may help euro find higher levels. Canadian dollar is appreciated today against dollar ahead of CAD interest rate decision and ahead of US retail sales data. The pair gained around 100 pips since yesterday closing and further rise might observed.
Gold Market
Gold has extremely bullish momentum. We observe very volatile price action from the beginning of the week, and we saw yesterday the precious metal reaching at 1750 price level before the today’s pullback at 1710. Strong resistance level is at 1700 where buyers waiting. IF the price goes below 1690 price level, we may see further retracement towards 1650 as a major pullback. The 1800 price level is the next target in long term analysis.
Oil Market
Saudi Arabia the OPEC leader decreased its selling prices to Asian countries to discount rates for May, my much more than expected margins for the week and kept stable price for Europe and raised the prices for United States. Brent futures gained 1.3% at $30 per barrel after falling 6.7% yesterday. WTI rose by 1.8% at $20.5 per barrel. WTI remain in pressure ahead of the European session today and bulls may look for entry beyond 200-HMA, despite the previous week OPEC oil cut.
USD Index
DXY went slightly higher today at around 99.3 after yesterday’s sell off at 99 level. 200 SMA could be a strong resistance level at 100.4. All eyes today turn to US retail sales and its predicted that we may see dollar losing some value.
European Stocks
The IMF announcement also harmed the European stocks forcing investors to lose their confidence. Today EU market opened to the downside, despite that the region commenced to lift restrictive measures to allow economies to reopen. UK100 went 12 points lower today, while STOXX600 index remains flat for the day. Yesterday Stoxx European index closed even higher by 1%.
On the data front 15-04-2020
| Time | Event | Impact |
| 08:12 am | CNY FDI – Foreign Direct Investment (YTD) (YoY)(Mar) | Medium |
| 12:30 pm | USD Retail Sales Control Group (Mar) | High |
| 12:30 pm | USD Retail Sales (MoM)(Mar) | Medium |
| 13:15 pm | USD Industrial Production (MoM)(Mar) | Medium |
| 14:00 pm | CAD BoC Rate Statement | High |
| 14:00 pm | CAD Bank of Canada Monetary Policy Report | High |
| 14:00 pm | CAD BoC Interest Rate Decision | High |
| 14:30 pm | USD EIA Crude Oil Stocks Change (Apr 10) | Medium |
| 15:15 pm | CAD BoC Press Conference | High |
