ActivTrades’ Market Analysts prepared their daily commentary on traditional markets for March 23, 2020. This is not a trading advice. See details below:
FOREX
The dollar is on the backfoot against the yen during the early part of Monday’s session, with the Japanese currency gaining almost 0.8% to the greenback. In light of the recent dynamic for this pair, the yen’s gains are remarkable. The dollar has been on a winning streak since the 10th of March, amassing gains of about 8.5% against the yen until the start of today’s session. The halting of the greenback’s gallop is, at least partially, the result of a coordinated move by the Fed and several other central banks around the globe to increase the liquidity of the American currency. Many of the recent dollar gains came from the difficulties many international businesses felt in finding sufficient quantities of the currency for payments, which was obviously pushing up the dollar’s value.
Ricardo Evangelista – Senior Analyst, ActivTrades
OIL
The barrel has fallen again as there is simply too much oil with a massive oversupply generated from this crisis scenario where demand has fallen, and supply has grown. The strong rebound of Friday, when the price lifted to $28, was over in just a few hours, and oil has fallen again to test the key support level at $21. In the last few hours we have seen a rebound to $22.50, which can be considered a modest rebound in the current conditions of huge volatility. Technically the holding support zone of $20.50-$21 is now crucial. The first positive signal would only arrive if prices manage to recover and hold on to $24, as the overwhelming sentiment remains very bearish and hugely volatile.
Carlo Alberto De Casa – Chief analyst, ActivTrades
