minus academy faq plus academy faq Check in circle Apple Android Home Magnifer Calculator Mail Email Facebook Twitter RSS Linkedin Linkedin hollower Headphones Wechats Instagram Line Mail 2 Phone Phone 2 Minus Plus Arrow right Arrow left (variant 2) Arrow right (variant 2) Brand logo Brand logo not filled Hamburger Flag of the Hong Kong Flag of the US/GB Flag of the US/GB Flag of the US/GB Flag of the China Flag of the China Flag of the China (traditional) Flag of the Taiwan Flag of the Hong Kong Flag of the Spain Flag of the Russia Flag of the France Flag of the German Flag of the Portugal Flag of the Italy Flag of the Poland Flag of the Czech Flag of the Hungary Flag of the Sweden Flag of the Bulgarian Flag of the Finland Flag of the Lithuania Flag of the Denmark Flag of the Croatia Flag of the Estonia Flag of the Norway Flag of the Romania Flag of the United Arab Emirates Flag of the United Arab Emirates Flag of the Indonesia Flag of the Malaysia Flag of the Korea Flag of the Korea Flag of the Samoa Flag of the Vietnam Flag of the Thailand Flag of the Japan Cross Cross large User Arrow down Arrow up Cube Info list Data comunication Clock Slash
Market Outlook
ZFX: Helicopter Money is here! Gold price jumped but not stock? - ZFX

ZFX: Helicopter Money is here! Gold price jumped but not stock?

24-03-2020 06:34

Review:

Monday (March 23) the global financial markets are still pessimistic. However, a breaking news rocked the market causing volatility. Before the US market open, the Federal Reserve (Fed) announced that it will implement an unlimited version of quantitative easing (QE). The Fed announced that it will buy assets like US Treasury and Mortgage-Backed Securities (MBS) “in the amounts needed” to deal with the coronavirus crisis.

The Fed said that in order to keep financing costs low, it will buy US $375 billion in US Treasuries and US $250 billion in MBS this week, and will launch a series of plans aimed at helping markets function more efficiently.

ZFX analyst Jacob Leung said that this is undoubtedly a "helicopter money". The concept is that all the debt in the market can be transferred to the Fed.

However, the three major Wall Street indexes were only boosted in short term, and eventually fell back down. One of the main reasons was that the US Senate have not yet passed the trillion-dollar economic stimulus plan. In addition, investors in the market are still digesting the sudden "move", which will take some more time.

ZFX analyst Jacob Leung said that it is good to have enough tools to inject liquidity into the market. But, "helicopter money" will cause side effect, such as hyperinflation. Precious metals or some essential commodities may be sought afterward by the whole market.

After the big news on Monday, the dollar fell significantly at that movement, and most of the major currencies jumped more than a hundred pips against the dollar. However, the strongest reaction was the gold. Gold price rose sharply from $1490 to $1560, and silver price also rose above the $13 level.

The market sentiment is relatively stable on Tuesday, in the morning session, the stock markets in the Asia-Pacific region generally rebounded, at least correcting Monday's decline. Strategically, new factors have been added to the financial market, which is expected to be more volatile.

 

 

 

 

AUD / USD

 

ZFX: Helicopter Money is here! Gold price jumped but not stock? - ZFX

 

Market theme / sentiment: The Fed's policy is positive for commodities and the Australian dollar has skyrocketed.

Support levels: 0.5850; 0.5700 Resistance levels: 0.5950; 0.6050

Recommendation: wait and see. (It is recommended not to consider the bid-ask spread factor)

Position follow-up and profit and loss: 0.58 has been shorted, with a target of 0.5750. (TP) (It is recommended not to consider the bid-ask spread factor)

Cumulative profit and loss: 495 pips

 

 

 

 

 

EUR / USD

 

ZFX: Helicopter Money is here! Gold price jumped but not stock? - ZFX

 

Market theme / sentiment: Euro bounced back due to the Fed's policy.

Support levels: 1.0750; 1.0680 Resistance levels: 1.0820; 1.0930

Recommendation: short 1.0780, target 1.0760, stop loss 1.0810. (It is recommended not to consider the bid-ask spread factor)

Position follow-up and profit and loss: 1.0690 has been shorted and the stop loss is at 1.0710. (Stop Loss) (It is recommended not to consider the bid-ask spread factor)

Cumulative profit and loss: 445 pips

 

 

GBP / USD

 

ZFX: Helicopter Money is here! Gold price jumped but not stock? - ZFX

 

Market theme / sentiment: Under the epidemic situation, the pound has not seen big improvement.

Support levels: 1.1600; 1.1550 Resistance levels: 1.1750; 1.1800

Recommendation: wait and see. (It is recommended not to consider the bid-ask spread factor)

Position follow-up and profit and loss: 1.1750 short, position not yet opened, target 1.1700, stop loss 1.1780. (Pending) (It is recommended not to consider the bid-ask spread factor)

Cumulative profit and loss: 290 pips

 

 

 

GOLD

 

ZFX: Helicopter Money is here! Gold price jumped but not stock? - ZFX

 

Market theme / sentiment: Gold price surged due to the Fed policy.

Support level: 1550; 1530 Resistance level: 1580; 1600

Recommendation: wait and see. (It is recommended not to consider the bid-ask spread factor)

Position follow-up and profit and loss: short 1475, target 1465, stop loss 1485. (Cancelled) (It is recommended not to consider the bid-ask spread factor)

Cumulative profit and loss: -70 USD

 

 

 

USOIL (US crude oil)

 

ZFX: Helicopter Money is here! Gold price jumped but not stock? - ZFX

 

Market theme / sentiment: The Fed news boosted, weak oil prices rebounded.

Support levels: 24.20; 23.10 Resistance levels: 25.30; 26.50

Recommendation: short 23.8, target 23.2, stop loss 24.5. (It is recommended not to consider the bid-ask spread factor)

Position follow-up and profit and loss: 23.5 has been shorted, with a target of 22.5. (TP) (It is recommended not to consider the bid-ask spread factor)

Cumulative profit and loss: $ 9.8

 

Risk Warning: The above content is for reference only, and does not represent ZFX's position. ZFX is not responsible for any form of loss caused by any trading operations conducted in accordance with this article. Please be firm in your thinking and take appropriate risk control.