Global stocks surge as European Coronavirus cases start to fall
Global stocks rose today as the market reacted to positive news regarding Coronavirus. Data from several European countries showed that the rate of infection was falling. Also, according to reports, authorities in France, Spain, and Belgium were planning to ease the existing stay-at-home orders. What is holding them back is a risk of a secondary wave of infections since COVID-19 does not have a cure. Meanwhile, across the pond, the US is bracing for a difficult period ahead as the number of new cases and deaths are expected to rise. Similarly, in Japan, the number of expected cases is expected to increase as the country prepares for a national lockdown.
Cryptocurrencies surged today, with Ethereum and Bitcoin rising by more than 5%. The catalyst for this surge was not immediately clear. Still, the surge could be associated with halving, which will happen in the next 37 days. Halving will involve reducing the number of blocks that miners are rewarded. This will lead to lower supplies and possibly push the price of Bitcoin higher. The rise could also be because of the overall surge in the stock market and the rising risks following the worse NFP data released on Friday.
The price of crude oil was volatile today as the market reacted to mixed messaging. Over the weekend, it was announced that an important virtual meeting set for today would be canceled. The meeting was set to deliberate on reducing supply by all producers. Earlier today, a report by CNBC said that Russia and Saudi were inching close to a deal that would see them cut supplies. The two countries are worried about the growing market share of the US, which accounts for more than 15%. Russia has a 14% market share while Saudi Arabia has a 12% market share. Meanwhile, data by Baker Hughes said that US producers cut oil rigs by 64. This was the third straight week of cuts.
The EUR/USD pair was little moved today as the market received divergent data from the US and Europe. The pair is trading at 1.0805, which is slightly below the 38.2% Fibonacci Retracement level on the hourly chart. As a result of this consolidation, the pair is trading along the 14-day and 28-day exponential moving averages. The Average True Range (ATR), which is a good measure of volatility, has remained significantly lower. The pair may see a significant breakout in the coming days.
The BTC/USD pair rose above 7,000 as momentum in the cryptocurrencies market rose. Looking at the four-hour chart, we see that the price is along the 50% Fibonacci Retracement level. The price is slightly above the 14-day and 28-day exponential moving average. The price is also above the important support shown in yellow below. The price may continue to rally ahead of halving.
The XBR/USD pair declined to an intraday low of 32.17. It then moved upwards to a high of 32.56 and then fell to the current 33.42. On the hourly chart, the on-balance volume has started to move lower while the price is along the 14-day EMA and above the 28-day EMA. The Parabolic SAR is below the price. There is a possibility for more volatility in the oil sector as more news comes in.