(04 MAY 2020)DAILY MARKET BRIEF 2:Coronavirus worries dash investor appetite
The EURUSD sees solid resistance near the 100-day moving average (1.0976). The renewed safety inflows to the US dollar could encourage a set
back toward the 1.08 mark, the major 38.2% retracement on the latest rebound.
Cable on the other hand slipped below the 1.25 mark on the
back of a strong dollar and has potential to extend losses toward the 1.2375 mark, the 50-day moving average, where we expect to see support.
WTI
crude is offered near the $20 a barrel, as the renewed US-China trade tensions should cast a shadow on economic recovery moving forward. The
price of a barrel could return to the $15/10 area.
Finally, Warren Buffett’s decision to continue sitting on a massive pile of cash and
getting rid of airline stocks didn’t help lifting the mood, as more corporate data will throw light on the extent of the economic damages
across corporations. And the results may not be as encouraging as last week’s tech giants’.
By Ipek Ozkardeskaya
