Market News

Rate cut by PBOC! Market sentiment holds steady

The dollar rose against the offshore RMB in early trading session on Monday, once rose over 100 pips to 7.0870 level. The analysis generally believes that China’s situation of the coronavirus outbreak is relatively under controlled which makes the RMB becoming stronger. However, the global situation is not that good and will still affect the Chinese economy severely.

Sentiment turns to be a bit risk averse on Tuesday European session

In the European session, the dollar rebounded, with the Aussie retraced back to 0.64 below. Oil prices fell that the WTI crude futures have broken $22 level, reflecting that the production cut agreement did not help the oil market much. The gold market remains in the high level, with spot gold trading at above $1700 while spot silver trading around $15.4. ZFX analyst Jacob Leung said that there was no big news so far, but if oil prices continue the downtrend, it will definitely hit the investment sentiment and drag the whole market.

Production cuts? Risk appetite maintains before the OPEC news

On Thursday’s European Session, oil prices further tested the resistance, which the WTI crude futures reached $26.67, the day high so far. The OPEC, Russia and other major oil-producers will meet today to discuss the production cuts agreement. As Russia has indicated that it is ready to lower the production by 1.6 million barrels per day, the market is currently expecting OPEC+ will eventually reach a consensus. 

Market sentiment remains cautious supporting the greenback

On Wednesday, bad news hit the Euro and the Aussie, together with the return of the risk aversion, the dollar once rebounded to 100.43. During the European session, the US stock index futures were just ranging, reflecting the cautious attitude of investors.

WTI ranging around $27 level before the OPEC+ news

he OPEC+ meeting originally scheduled to be held on Monday was postponed to Thursday, once suppressing the oil prices. Currently, the oil prices tends to be stabilized, which the WTI crude futures is trading around $27 level. Before any news of the production cuts, it is likely that the oil market will consolidate at the current range.

Level off? US stock index futures rally on Monday European session

On Monday opening, oil price gapped down and dropped over 10% as there is uncertainty regarding the OPEC + production cuts this week, which hurt the market sentiment. However, US stock index futures were still doing well after President Trump and Vice President Pence said that they see signs that the coronavirus outbreak in US is beginning to level off. Investor sentiment turns better, boosting the Dow futures and the S&P 500 futures both rising more than 3%.

Risk aversion rising  Dollar Index returns to 100

Even if the current rise in oil prices eases some of the demand for safe havens, it is difficult to stop the dollar. In the European session on Friday, before the announcement of Non Farm Payroll, investors were quite worried. A Reuters survey of analysts showed that 100000 jobs lost in March. Dollar Index rose above 100.5 due to the uncertainty.

Risk aversion drives the dollar higher

During the European session on Wednesday, the dollar rose against major currencies, mainly because the market sentiment turned gloomy. Asian stock markets were generally weak, which the Nikkei and HSI closed lower. The major European stock markets are also following the trend, with FTSE, DAX, CAC, all falling by more than 3%.

Tuesday’s European session review – USD continues to rebound

ZFX analyst Jacob Leung said that even though the financial market sentiment seems to be improving, the volatility is still quite high, causing tensions among investors. The coming data announcement this week would be highly uncertain which may be bullish for the dollar.