FOREX TRADING STRATEGY APR 10 - KEEP CALM

Apr 10, 2020
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The world fell into crumble again. Markets everywhere became chaotic. A good trader is the one who remains calm and check how the news affects the market. Let's get updated and adjust your trading strategies accordingly.

Downfall

Asian stocks will see a chaotic session on Friday as investors contemplate new measures from the Federal Reserve to prevent a coronavirus-induced collapse. The dollar was stable after falling overnight.

Stocks slipped in Tokyo and moved higher in Seoul; Australia, Hong Kong, India and Singapore are among the markets closed for vacation. Earlier, U.S. stocks had the biggest weekly gain since 1974 when investors looked through the staggering unemployment figures to a series of other sweeping moves from the Fed to provide 2.3 trillion dollars in aid. Meanwhile, Anthony Fauci, director of the US National Institute of Allergy and Infectious Diseases, said the US deaths due to Covid-19 may be much less than previously predicted.

Yesterday, Treasury yields fell and corporate bonds rose. Gold traded near the highest level since 2013.

Finding support

As new evidence of economic damage from the coronavirus pandemic comes massively, investors are choosing to focus on the great support from global policy makers. The Fed will penetrate the municipal bond market to an unprecedented level, now able to buy "fallen angel" bonds (referring to devalued bonds) from companies. which recently lost its investment grade rating, and the Fed extended its Asset-Backed Securities Loan Facility (TALF) program to include top-ranked commercial mortgage securities and mortgage lending obligations.

Meanwhile, European Union finance ministers agreed on a package of 540 billion euros (US $ 590 billion) to counter the economic collapse of the global pandemic.

Elsewhere, oil fell at the close, reversing previous gains, as investors found OPEC +'s proposal to curb supply is not enough to offset the demand destroyed by the Covid service. -19. The OPEC meeting ended without any agreement - talks will resume on Friday.

Movements in markets

Stock market

  • The Japan Topix index dropped 0.1% at 9:51 am in Tokyo.
  • The Korean Kospi index increased by 0.6%.
  • The S&P 500 index rose 1.5% on Thursday.
  • European stock index Stoxx 600 rose 1.6% on Thursday.

Currency market

  • The yen has stabilized at 108.48 / USD.
  • The offshore renminbi was traded at 7.0589 / USD - little changed.
  • The euro was bought at $ 1.0927 - little changed.

Bond market

  • 10-year Treasury Bond yields fell 5 basis points to 0.72% on Thursday.

Commodity market

  • West Texas crude fell 9.3% to $ 22.76 / barrel on Thursday.
  • Gold increased 0.4% to $ 1,690 / ounce.