Relief rally ends on Wednesday


Risk-off sentiment returned on Wednesday, and investors sold into the latest stock market' rally. 

During the night, President Trump warned about two to four dreadful weeks ahead and 100,000 - 240,000 deaths in the coming months, which put a negative tone on the market. US equity indices were down 3% after the US opening bell, and it looks like the latest correction was indeed only a bear market rally. In the FX land, the greenback advanced again, and the EURUSD pair was down one percent, trading at around 1.0930.

From the macro calendar point of view> Despite last week's mind-numbing explosion in initial jobless claims, expectations were for a rather modest 150k drop in ADP employment in March. However, the ADP employment dropped only to -27,000.

Additionally, the ISM's US Manufacturing survey fell modestly from 50.1 to 49.1 in March (far better than the 44.5 print expected). It looks like the manufacturing was immune to the corona crisis in March.
Cookie Policy: The Axiory website uses cookies and by continuing using the website you consent to this. Risk Warning: Trading leveraged products such as Forex and CFDs may not be suitable for all investors as they carry a high degree of risk to your capital. Please read the full Privacy Policy.