US Market Wrap
Markets closed the session red yesterday, after Fed chief Jerome Powell warned that there would be no negative interest rates for the foreseeable future.
It was a bleak prospects from Powellwho also said that the current situation would be, “significantly worse than any recession since World War II”. He also handballed the problem to the government, requires more fiscal stimulus.
Those were not the prospects SPX wanted to hear, which put the key index in the red and down 1.75% on the session. At the same time, Greenback saw some upside and is back above the 100 level on the US Dollar Index, while GOLD was also higher.
There has definitely been a bit of a risk-off feeling creeping up this week, and with some good news in the media that could continue into the weekend.
The one opportunity for markets to show some strength again is likely to be on the backs of people coming back to work.
One good thing at the moment is that unemployment claims in the United States are falling. That being said, we would expect that most people who have lost their jobs have already done so. Therefore, unemployed claim to decline.
However, it is not beautiful to see the continued demands on the number, with the number jumping up to the expected 25 million. Something that is clearly not sustainable, but hopefully will start to turn around shortly.
Forex signal update
FX Leaders Team closed a signal in the red yesterday like ours NZD / USD trading fell on the back of RBNZ.
Gold – pending signal
GOLD is above the $ 1700 level and as we can see in the charts pushes into the top of that flag formation. Could this be the day the award erupts?
SPX – Watching
the SPX and most risk assets have been soft this week. The resistance of 2,900 still causes some real sales pressure, as we can see in the chart.
Price is retaking $ 9,000 and it looks like there is a bid eager to buy. Again, the test seems to be $ 10,000, but an attempt at that level will certainly be on the cards this week.