Analytics

News, Trends, & Analytics 05.03.2020

How markets reacted to the Fed decision

Today, the focus is on the results of “Super Tuesday,” weak data on Brazil’s economic growth, as well as the decision of the US Federal Reserve on the interest rate.

 

News

The winner of “Super Tuesday” was Democrat Joe Biden. Affects S&P500


The heads of the Ministry of Energy for Saudi Arabia and Russia will hold a bilateral meeting before the OPEC+ general meeting. Affects Brent


Brazil’s economic growth in 2019 was 1.1%. Affects ETF Brazil MSCI


The US Federal Reserve cut its key rate directly by 0.5%. Affects USD


The UK Business Activity Index: Worse than predicted. Affects GBP

 

Calendar

17:00 GMT

A speech by the head of the Bank of England Mark Carney will take place. An event that could trigger an increase in GBP volatility.


17:45 GMT

A speech will be made by the head of the Bank of Canada Stephen Poloz. The comments of the head of the department can cause an increase in CAD volatility.

 

Technical Analysis

EUR/USD

After the US Federal Reserve reduced its rate by 0.5%, markets reacted atypically: stock indices began to decline, and the US dollar attempted to strengthen. A little later, stock markets began to grow, but the US dollar continued to grow. Perhaps the market considered that the American currency had already fallen enough in price in recent days.

Technical analysis of EUR/USD indicates an upcoming bullish trend reversal. First of all, falling fractals signal this. It is also worth noting that the asset has reached a strategic resistance level of 1.12000.

NZD/CAD

This pair may rush to 0.84500 after a false breakdown of the upward support level has occurred.

EUR/AUD

This pair broke through the support level at 1.68300. Now traders will begin to win back the appearance of the figure “head and shoulders”. We recommend considering asset sales.

 

EUR/AUD on this day in history

  • Since 2000, Mar. 5th has been a trading day 15 times.
  • On 71% of those days, the asset finished trading with growth.
  • The maximum strengthening range was 0.81%.
  • The downward trend was limited to 0.66%.
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