Crude Is getting Slaughtered; At Some Stage It Will Represent Value

Crude Is getting Slaughtered; At Some Stage It Will Represent Value

US crude inventories hurt oil price further. Charts may help in timing a bottom. Oil Decline Continues After US Data Brent  has fallen around  51% and WTI about 57% since OPEC met in Vienna on 5 March and since Saudi Arabia and Russia began its damaging price war. Indeed this, with the COVID-19 spread,  was …

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German Fiscal Authorities Launch Expansion;GER30 Momentum Still Down

German Fiscal Authorities Launch Expansion;GER30 Momentum Still Down

German fiscal stimulus has generally been slow due to the black zero policy. However, facing the coronavirus, the authorities have acted swiftly. Fiscal Measures The German fiscal authorities have, over the last two weeks, announced a series of measures. These include guarantees, loans and stimulus. Examples include: Application conditions to apply for short-term work schemes have …

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Bounces in the SPX Are Dangerous; Short Sellers Eyeing Low Risk Entries

Bounces in the SPX Are Dangerous; Short Sellers Eyeing Low Risk Entries

Market participants still remain fearful. Bounces or pauses may be exploited by short-sellers looking for lower risk entries. US Markets Still Waiting For Workable Fiscal Response to Coronavirus Markets never move in a straight line. During the market crashes of 1929, 1987 and 2008 rallies did enormous amounts of damage as investors were sucked in, believing …

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SPX Shakes Off Fed 50bps Cut; Short Sellers May Have Their Fingers On The Trigger

SPX Shakes Off Fed 50bps Cut; Short Sellers May Have Their Fingers On The Trigger

Yesterday, the Fed delivered a surprise 50bps cut. The index rose initially but then dropped to end the day down. Rate Cutting Cycle as Opposed to Mid-Cycle Cut After a very bland official G7 communication indicating that the G7 Finance Ministers and Central Bank Governors are closely monitoring the spread of COVID-19 and that they will intervene if …

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EURUSD Retraces to Fibonacci and SMA Confluence of Resistance

EURUSD Retraces to Fibonacci and SMA Confluence of Resistance

Technically the EURUSD is up against resistance on the daily and the coronavirus spread in Italy is likely to add fundamental pressures as safe havens sought. EURUSD Hits Daily Confluence of Resistance Further to our previous article, the left chart shows the EURUSD daily time frame. The currency pair has retraced to the 38.2% Fibonacci level, which may …

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Oil Fundamentals Need to Improve Or Bounces Will Attract Attention

Oil Fundamentals Need to Improve Or Bounces Will Attract Attention

Coronavirus is hurting demand for oil and action is needed by OPEC+ to support prices. Oil Hit From Both the Demand and Supply Sides Oil fell heavily on Monday following concerns about the spread of the coronavirus outside of China, with cases growing in South Korea and Italy. Moreover, the virus has exacerbated an already poor economy where China …

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EURUSD Bear Continues; Bounces Are Targets As Germany Languishes

EURUSD Bear Continues; Bounces Are Targets As Germany Languishes

German industrial production is in dire straits; hurt by trade wars and declining Chinese demand. The EURUSD is reflecting this weakness and any bounces are likely to be viewed as bear market rallies. German Industrial Production Weakness Since January 2018 German industrial production has been heading south-east. This is clearly denoted by the red downtrend …

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USDOLLAR Weekly Reflects Fed Chairs Comments; Pullback May Provide Opportunities to Dollar Bulls

USDOLLAR Weekly Reflects Fed Chairs Comments; Pullback May Provide Opportunities to Dollar Bulls

Fed Chair Jerome Powell told Congress yesterday that the US economy is in a good place given the decline in trade uncertainty [after the phase one trade deal was signed between the US and China] and the stabilization of global growth. However, he did concede that there is a potential threat from the coronavirus. “Good Place” Reflected in PMIs …

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Coronavirus Hurting Dr. Copper; Base Metal Rallies In a Decline

Coronavirus Hurting Dr. Copper; Base Metal Rallies In a Decline

The  coronavirus is hurting the Chinese economy and the epidemic is mauling the demand for copper. The spread of the coronavirus is exacerbating an already fragile Chinese economy and one of the places this is being reflected is in the demand for copper. Since 21 January the base metal’s price has declined by 10.25%.  Price may …

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GBPUSD Hits Resistance Ahead of GDP Release

GBPUSD Hits Resistance Ahead of GDP Release

GBPUSD fell sharply last week losing 2.4% of its value .  However, today has seen a rally into resistance, which may provide a low risk short opportunity. Preliminary GDP q/q is due out tomorrow and is forecast to show zero growth. However, manufacturing production is expected to show an increase on a month-on-month basis. The market will …

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