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Market Review 11 March 2020

by Constantinos Loizou

  • In the Economic calendar of today, we can expect some volatility in the GBP and in the USD
  • At 09:30 (GMT) the National Statistics office of the United Kingdom will announce their Manufacturing Production for the last Month
  • That number measures the manufacturing output, which is an important indicator of the economic strength of the UK
  • The result is expected to be reduced to 0.2% following last month’s 0.3%
  • At 12:30 (GMT) the Department of Labour Statistics of the USA, will announce their Consumer Price Index, ex Food and Services
  • That number is a correlation between the retail prices of goods and services
  • The result is forecasted to remain unchanged as the previous month, at 0.2%
  • Also, at 12:30 (GMT) the Energy Information Administration will announce the Crude Oil Stocks Change
  • That number is a measure of the modification in the total of barrels in stock of Crude Oil
  • The outcome is expected with an increase to 1.848 million, whereas from last week’s which was at 0.785 million
  • The Bank of England today slashed UK interest rates to just 0.25 per cent in a bid to tackle the fallout of the coronavirus outbreak on the economy, and it follows the US Federal Reserve’s move to cut rates by 50 basis points the week before last.
  • Dow Jones 30, Nasdaq 100, S&P 500:  -1.90%
  • UK FTSE 100:  +1.21%
  • DAX 30:  +0.72%
  • ITALIAN MIB: +2.34%
  • Euro Stoxx: +0.96%
  • Spanish IBEX: +0.67%

On the Charts

  • Platinum price is now at 879
  • The precious metal broke the upward trendline (blue) to the downside, and tried to retest it, but found resistance at $910, a previous inside resistance, and 38.2% Fibonacci Retracement level (from 1033 – to 847)
  • The price is below its 200 days Moving Average
  • The momentum is bearish since both momentum indicators are both below 0
  • If the prices remain below the $910 area, then we may expect to see the price moving on a downside towards the $835 mark or even lower reaching the $805 mark, (previous support level and 161.8% Fibonacci Extension Level [from 848 to 916])

Source : FXGM Investment Research Department / Bloomberg