G7 Finance Ministers Joint Statement Stable Economy at All Costs

[Focus on today] Wednesday, March 25, 2020

 

① Pending Bank of Canada holds financial services conference

② 07:50 Summary of opinions of the Bank of Japan monetary policy meeting

③ 17:00 German IFO business climate index in March

④ 17:00 Swiss ZEW investor confidence index in March

⑤ 17:30 UK CPI and retail price index monthly rate in February

⑥ 19:00 March CBI retail sales difference

⑦ 20:30 US monthly rate of durable goods orders in February

⑧ 21:00 U.S. January FHFA house price index monthly rate

⑨ 22:30 US to EIA crude oil inventories for the week of March 20

Fundamentals:

 

[API report: U.S. crude oil inventories fell by 125 million barrels to 451.4 million barrels last week] U.S. API gasoline inventories fell by 2.6 million barrels and refined oil inventories fell by 1.9 million barrels as of March 20; U.S. crude oil imports increased by 57,000 last week Barrels / day.

 

[CME Group raises COMEX100 gold futures margin] March 25, the Associated Press of the Chicago Mercantile Exchange (CME) raised the COMEX100 gold futures margin by 19.3% to US $ 8350 / contract, previously it was US $ 7,000 / contract.

 

[Abnormal gold quotes from multiple brokers around the world] Market sources report that major gold quotes from major banks around the world have been problematic since 12:00 noon Singapore time on the 24th. The lack of gold circulation has led to extremely high spreads throughout the market. Discontinued transactions and quotes from major brokerages also vary. The gold quote spreads on some brokerage platforms have even skyrocketed to more than 8,000 points (about 80 US dollars), and silver quote spreads have abnormal values ​​of several hundred points.

 

[European Central Bank President Lagarde strongly supports the new crown pneumonia bond at the euro zone finance ministers meeting]

 

[Russia no longer discuss increasing crude oil production] On Monday, Russian Energy Minister Novak and executives of Russian oil companies discussed the current crude oil market. A person familiar with the matter said that no one is discussing a sharp increase in production, even if it is a short-term plan. Russia ’s Lukoil Vice President Fyton called the current oil price a disaster and called on Russia to resume negotiations with Saudi Arabia.

 

[US service industry PMI drops to record low]

The latest data on March 24 showed that the US service industry activity index fell to 39.1, not only hitting a historical low, but also lower than economists had expected recently. The manufacturing purchasing managers index (PMI) created the largest drop since 2009, falling to 49.2.

 

[G7 Finance Ministers Joint Statement Commitment to Stabilizing the Economy at All Costs]

The G7 Finance Minister and the central bank governor issued a joint statement on the 24th that in order to deal with the negative impact of the new crown pneumonia epidemic, the G7 will take all necessary measures to restore confidence and economic growth and protect the flexibility of employment, business and the financial system.

Technical side:

XAUUSD:

(Golden 1H chart)

Looking at the Dayang line from the golden daily line, the early dense trading area was explored. The 1-hour chart MACD diverged, the increase was too large, and there was a demand for correction.

Pressure level: 1640

Support level: 1565

Operation strategy: short position near 1638, target 1588, stop loss 1644,

long near 1565, target 1610, stop loss 1558

EURUSD:

(EURUSD 1H chart)

From the 1-hour chart of the euro against the US dollar , the market is running above the uptrend line, the rally continues, and the correction line is long.

Pressure level: 1.088

Support level: 1.077

Operation strategy: long near 1.077, target 1.087, stop loss 1.074

GBPUSD:

(GBPUSD 1H chart)

From the perspective of the GBP / USD daily line, the two suns are overcast, and there is rising momentum. After the 1-hour chart breaks through the center, it will go back long.

Pressure level: 1.193

Support level: 1.172

Operating strategy: long at 1.1720 , target 1.1880, stop loss 1.1 680

USDJPY:

(USDJPY 1H chart)

Looking at the 1-hour chart of the USD / JPY, the market ’s amplitude in the wedge-shaped range is getting narrower and narrower, and the timing of changing the market is getting closer. If it breaks down, it may fall sharply.

Pressure level: 111.70

Support level: 108.40

Operating strategy: short at 111.50, target 108.40, stop loss 111.90

USOIL:

(USOIL 1H chart)

Looking at the US crude oil daily line, the Xiaoyang line is sideways, and the 1-hour chart runs above the trend line.

Pressure level: 25.2

Support level: 23.4

Operation strategy: long near 23.4, target 25, stop loss 23

*************** Notes for trading **************

1. Follow the trend and keep in mind of risk control

2. Entry can be added or minused by 5 pips, exit can be added or minused by 5 points

3. It is recommended to take half of the profit after 50 pips of profit, and the rest position with stop loss of entry.

4. Orders that arrive at the entry point before 12 pm are valid, and subsequent orders are invalid. (Unless specified)

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(The above personal strategy is written based on the objective and independent principles. It is for reference only and does not represent any direct operational advice to investors. Investors will be responsible for the profits and losses of the market.

 

MYFXSchool Analyst: Michael

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