The Bank of England held an unscheduled meeting, where it decided lowered its base interest rate by 15 bp to 0.1% from 0.25%. The regulator also increased the volume of the government bond repurchase program by £200bn. GBP, to £645bn. GBP.
The Reserve Bank of Australia (RBA) also lowered its interest rate for the second time by 25 bp, to a record low of 0.25% per annum. Also, the Central Banks of Indonesia, the Philippines, Brazil and Taiwan lowered their rates. Amid a strengthening dollar, an easing in monetary policy has put pressure on all major currencies.
Today’s events (GMT 3):
- 12:00 Eurozone: Current Account n.s.a (Jan).
- 12:30 UK: Public Sector Net Borrowing (Feb).
- 15:30 Canada: Retail Sales (MoM) (Jan).
- 17:00 USA Existing Home Sales (MoM) (Feb).
- 20:00 USA: Baker Hughes US Oil Rig Count.
The expectations made according to the forecast were fully justified. The price has fallen below 1.0802. With increased volatility, the Gann price ranges lost. Levels have all been well tested, but it’s tough to say which ones have become important. Yesterday, the price stopped at the 90th, 225th and 270th degrees. In the previous fall, other degrees worked.
Today, major currencies are trading in the black against the US dollar. The growth leaders are AUD and NZD. Prices are rising against the backdrop of rising oil prices and positive on stock exchanges.
Crosses with the euro are all in the red. The EURUSD pair rebounded 130 points from a low of 1.0653. The balance line (Lb) passes through the 1.0841 mark. The stochastic is located in the “sell zone”. This is considered a strong signal, according to the trend. There is no “bullish” divergence. Given the above factors, it will be more correct to consider the further weakening of the euro. According to the forecast, I am waiting for a fall from the Lb to 1.0600. It’s already scary to go into shorts, so it’s better to sit outside the market, especially given that this is the last day of the week.
Coronavirus continues to conquer the world outside of China. Scientists are struggling to invent a cure for it. The Central Bank and governments have already taken measures, but they are not enough to stop the panic in the markets.