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US data set a new low

25 Mar, 2020

US equities and gold soared

Data and news released yesterday:

The PMI of Markit manufacturing industry and service industry announced by the US yesterday was not performing well, among which the PMI of service industry fell to 39.1, the lowest level in history, putting pressure on the US dollar.

President Trump held a conference call with top Wall Street investors and hedge fund executives.

CME increased the margin of comex100 gold futures

COVID-19 bond was strongly supported by the European central bank governor Lagarde at the meeting of the finance ministers of the euro area.

COVID-19 is the most serious health crisis facing Europe since the Spanish flu, Peregrin, President of the European stability mechanism (ESM).

The Bank of England said it would carry out the contingent repurchase facility (CTRF) operation on March 26 and April 2 as a supplement to the bank's regular liquidity tools.

 

Market Volatility:

The U.S. dollar fell across the board yesterday, with the U.S. dollar index dropping as low as around 101.04, down 0.67% on the whole, reducing its decline in afternoon trading in New York, before falling 1.5%.

The euro rose 0.58% to near 1.0788, jumping more than 1% to a high of 1.0888 at one time; the selling related to the fixed offer and the selling of the euro against the yen slowed down the rise of the euro.

USD/JPY were flat at around 111.23, rising to around 111.71 at one time, the highest since February; market research indicated that the USD / JPY was selling at around 111.60.

The pound as a whole rose 1.91% to near 1.1762, with UK manufacturing and services monthly activity indicators falling to their lowest level since the data began to be released in 1998.

Spot gold rose more than $60 violently, rising more than 5% at one time due to the surge of precious metals driven by supply concerns, refreshing the peak since March 12 to $1,634.16/ounce.

WTI may crude oil futures closed at 24.01 USD / barrel, up 2.78%; Brent may crude oil futures closed at 27.15 USD / barrel, up 0.44%.

 

CWG future forecast:

In the early trading hours of this trading day, the Bank of Japan will release the summary of the opinions of the monetary policy meeting. In the European market, important data will be released from Britain and Germany. In the US market, the monthly rate of durable goods orders and the monthly rate of FHFA house price index will also be released. The focus of the market is still on the prevention and control measures of governments.

Institutional Analysis: ANZ analysis believes that the dollar index will rise to 105 in the short term, the highest level since the end of 2002. The Fed's action may alleviate the market's urgent need for the dollar. If the European Central Bank and the Bank of Japan announce more measures, the dollar index will soon rise to 105. Only by waiting for the global epidemic to improve will market risk aversion improve and the dollar's rise change.

 

Financial calendar:

07:50 summary of opinions of the monetary policy meeting of the Bank of Japan

17: 00 Germany's IFO business climate index in March

Swiss Credit Suisse / CFA economic forecast index for March

17: 30 UK annual rate of PPI input in February

UK retail price index annual rate in February

Annual rate of CPI in the UK in February

19: 00 UK March CBI retail sales margin

20: 30 monthly rate of durable goods orders in February in the United States

21:00 US January FHFA house price index monthly rate

22:30 EIA crude oil inventory for the week till March 20

 

CWG financial knowledge:

Monthly rate of durable goods orders in the United States: the U.S. Department of Commerce announced that durable goods orders refer to the total quantity of durable goods orders received by manufacturers, and durable goods refer to goods that are planned to last for three years or more, such as heavy industrial products such as motor vehicles and aircraft. Because the production of durable goods often requires a lot of human, material and financial resources, so it has a great influence on the development of the American economy. The final figures show how active manufacturing is in the US. If the published data record a high level, it will be good for the US dollar, otherwise it will be bad for the US dollar.

 

CWG Markets, as a fully authorized and regulated trading service provider of FCA, the contents and opinions contained in this article are only general information and do not take your investment objectives, financial situation and investment needs into account. Any reference to historical price fluctuations or price levels is based on our analysis and does not indicate or prove that such fluctuations or price levels are likely to recur in the future. CFD is a complex instrument, and there is a risk of rapid loss due to leverage. You should consider whether you understand how CFD works and whether you are able to take the risk of losing money. If you have any questions, please seek advice from an independent consultant. For more details, please visit www.cwgsvg.com to obtain and refer to the company's risk disclosure summary.