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Market Review 17 March 2020

by Constantinos Loizou

  • In today’s Economic Calendar we can expect some volatility in the GBP, EUR and USD
  • At 09:30 (GMT), the National Statistics office of the UK will announce their Unemployment Rate Numbers
  • That number displays the ratio of unemployed workers divided by the total civilian labor
  • The result is forecasted to remain the same as the previous month at 3.8%
  • At 10:00 (GMT), the Centre for European Economic Research will announce the result of their Survey regarding the Economic Sentiment
  • It is a survey that measures the level of the Sentiment of the investors who are optimistic versus those who are pessimistic
  • The result is forecasted to decrease to -26.4, taking into consideration that last month was 8.7
  • At 14:00 (GMT), the Bureau of Labor Statistics of the USA will publish their survey relating to Job openings
  • It measures the job vacancies of the last month
  • The result is forecasted to increase to 6.476M, considering that last month was 6.423M

Global Stock Indices this month

  • Dow Jones : -30%
  • S&P 500: -25%
  • Nasdaq 100: -26%
  • Euro Stoxx: -40%
  • UK FTSE 100: -33%
  • DAX 30: -39%
  • MIB 40: -43%
  • IBEX: -40%

On the charts

  • Price of the USD/JPY is now at 106.64
  • Price had broken below the upward trading channel, and in the previous days it moved sharply to the downside reaching 101.19, the 2nd target of our channel
  • Last week the pair moved towards the upside, but it found resistance at the 108 price mark, a level which consists a previous inside resistance level, the current level of the 200 days Moving Average, and the 61.8% Fibonacci retracement level (From 112 to 101)
  • Now it is testing the previous support level at 105.92 – black dashed line
  • Momentum remains bearish, since the Rate of Change Indicator (9 periods) and MACD Indicator are both below 0
  • If the price closes below the black dashed line, there is a possibility to see the price moving lower and retest the previous support level at 101.2, or lower to the important psychological level of the 100 mark

Source : FXGM Investment Research Department / Bloomberg