US futures tumble as Washington announces biggest stimulus ever

US futures turned negative as traders reacted to the new stimulus package from Washington. The indices had gained earlier in the day as traders cheered a breakthrough deal that will unleash the biggest stimulus packages in history. The deal came after a few days of intensive negotiations in Washington. In the current proposal, individuals in the US earning less than $75,000 will receive $1,200 checks while children will receive $500. More than $300 billion has been set aside for small and medium companies while $500 billion has been set aside for big companies, cities, and industries. Dow futures declined by 0.95% while Nasdaq futures declined by more than 1.60%.

The sterling was relatively unchanged at last Friday’s highs as traders reflected on the February CPI data. The numbers showed that headline consumer prices rose by 0.4% after falling by 0.3% in January. On an annualized basis, the prices rose by 1.7% as was widely expected. Meanwhile, core CPI, which exclude the volatile food and energy prices rose by 0.6% after declining by 0.6% in January. Retail prices rose by 0.5% while the PPO input declined by 1.2%. While these numbers were important, traders were focused on the broader impact of the ongoing lockdown.

The US dollar was relatively unchanged as traders digested the impact on the stimulus deal. They were also reflecting on mortgage data, which showed that mortgage applications had declined by more than 29% in the past week. Additionally, we received durable goods data from the Commerce Department. The headline numbers showed that orders dropped by 0.6% in February, which was the lowest level since August 2018. The core durable goods orders declined by 0.6% after rising by 0.6% in January. In the near term, we will see lower orders because many companies have been shut during the Coronavirus crisis.

EUR/USD

The EUR/USD pair was unchanged today and is currently trading at 1.0823, which is slightly below the important resistance level shown in pink below. The price has also formed a symmetrical triangle pattern which is nearing its tip. This means that the pair could soon make a significant breakout in either direction. If it does, the key levels to watch are the support and resistance points of 1.0635 and 1.0890 respectively.

XBR/USD

The XBR/USD pair declined to an intraday low of 28.20 as traders’ fears of oversupply mounted. The current concern is that oil storage is close to running out. The XBR/USD pair is trading along the lower line of the Bollinger Bands and below the short and medium-term exponential moving averages. The RSI has moved below the oversold level of 30. In the near term, the price could continue to decline unless US and OPEC leaders move to bring stability.

SPX500

SPX500 futures declined as sentiment in the market changed after congress agreed on a rescue package. The futures are trading at $2,387, which is the lowest level since yesterday. On the 30-minute chart, the index appears to have found significant resistance at the $2500 level. The price is slightly below the 25-day and 14-day exponential moving averages. There is a possibility that the index will decline further as traders sell the news.