ActivTrades’ Market Analysts prepared their daily commentary on traditional markets for April 16, 2020. This is not a trading advice. See details below:
FOREX
The US dollar continues to strengthen during the morning trading session in Europe, as the flight to safety intensifies with a cascade of sobering numbers from around the globe illustrating the scale of the economic recession triggered by the coronavirus crisis. The greenback is gaining ground against all other major currencies pushing the Dollar Index to the vicinity of 100. Interestingly, the dollar is recording gains against both the Japanese yen and the Swiss franc, outperforming the two refuge currencies par excellence in terms of safe-haven appeal.
Ricardo Evangelista – Senior Analyst, ActivTrades
GOLD
Gold is back in green today to continue its unusual direct correlation with stocks, which are also gaining amid a positive environment for shares. This follows both asset classes, which typically are inversely correlated, falling yesterday. Technically we are still in a bullish scenario, with the gold price not being boosted by the risk scenario but from the awareness that central banks are going to be forced to print a huge quantity of liquidity in the next months, and probably years too.
For the spot price, the zone $1,700-$1,710 has now become a first support area, while a climb above $1,730 could open space for further rallies and new records.
Carlo Alberto De Casa – Chief analyst, ActivTrades
