Fed To Provide Up To $2.3 Trillion In Loans To Support Economy

Continuing its unprecedented steps to support the economy amid the coronavirus pandemic, the Federal Reserve announced additional actions on Thursday. The Fed said it will provide up to $2.3 trillion in loans to assist households and employers of all sizes and bolster the ability of state and local governments to deliver critical services during the coronavirus pandemic. “Our country’s highest priority must be to address this public health crisis, providing care for the ill and limiting the further spread of the virus,” said Federal Reserve Chair Jerome Powell. He added, “The Fed’s role is to provide as much relief and stability as we can during this period of constrained economic activity, and our actions today will help ensure that the eventual recovery is as vigorous as possible.” The Fed said the specific actions it is taking include bolstering the effectiveness of the Small Business Administration’s Paycheck Protection Program by supplying liquidity to participating financial institutions. The central bank said the Paycheck Protection Program Liquidity Facility will extend credit to eligible financial institutions that originate PPP loans, taking the loans as collateral at face value. Additionally, the Fed said it will ensure credit flows to small and mid-sized businesses with…

U.S. Producer Price Index Dip 0.2% In March

With energy prices falling sharply, the Labor Department released a report on Thursday showing a modest decrease in U.S. producer prices in the month of March. The Labor Department said its producer price index for final demand dipped by 0.2 percent in March after sliding by 0.6 percent in February. Economists had expected prices to drop by 0.4 percent. Meanwhile, the report said core producer prices, which exclude food and energy prices, rose by 0.2 percent in March after slipping by 0.3 percent in February. Core prices were expected to show no change. The material has been provided by InstaForex Company – www.instaforex.com…

EUR/USD and GBP/USD. Results of April 9. Third consecutive weak report on US jobless claims ends the dollar. Euro steadily

4-hour timeframe
Average volatility over the past five days: 103p (high).
The EUR/USD pair resumed the upward movement on Thursday, April 9, as we expected. After spending more than a day near the critical Kijun-sen line, the pair still found the strength to continue working out our scenario called “correction against correction”. Thus, we believe that the upward movement will continue to the level of 1.0967 (the level of volatility for today), and, most likely, to the psychological mark of $1.10. We can expect the upward movement to be completed in the 1,1000 area, but continue to rely on technical indicators and their readings when making trading decisions. Volatility has increased today compared to yesterday, but remains within reason – 100 points.
For the first time in a long time, we can finally say that market participants reacted to macroeconomic statistics. They reacted the way they used to. Even if there was no ambiguity in today’s events. In fact, one of the most significant macroeconomic reports of the day caused a sell-off of the US currency against the euro. We are talking about the report on applications for unemployment benefits in the United States. Recall that over the past…

EUR/USD. Buying the pair is risky, despite the Fed’s “monetary surprise”

The euro-dollar pair received unexpected support today, after which the bulls were able to test the ninth figure and even approach the resistance level of 1.0950 (the Tenkan-sen line on the daily chart). Although there were no prerequisites for such price spikes in the morning: traders froze in anticipation of new negotiations between the EU finance ministers, and the euro-dollar pair, respectively, fluctuated in a narrow price range, reacting sluggishly to the accompanying rumors and assumptions. But, as it often happens in the foreign exchange market, the situation changed after the Federal Reserve unveiled a program to help the USeconomy. After this, dollar bulls lost their footing.
The package provides loans to businesses and households, as well as support for municipal debt obligations. As the Fed noted, households and companies (representatives of both small and large businesses), as well as local authorities will receive assistance. First, the regulator will create a mechanism to support the lending fund worth $350 billion – this step is part of the overall package of incentives totaling two trillion dollars (it was approved in the previous month). Second, the Fed will support local authorities, both at the state and municipal levels. The aid will…

Comprehensive analysis of movement options for #USDX vs Gold & Silver (H4) on April 10, 2020

Minutte operational scale (H4 time frame)
The continuation of the battle for metal. #USDX vs Gold & Silver – review of the movement’s development from April 10, 2020.____________________
US dollar index
The movement of the dollar index #USDX from April 10, 2020 will be determined depending on the development and direction of the breakdown of the range:
resistance level is 100.05 on the UTL control line of the Minuette operating scale forks;support level is 99.20 on the initial line of the SSL of the Minuette operational scale forks If the support level of 99.20 on the starting line SSL of the Minuette operational scale forks will determine the continuation of the downward movement of the dollar index to the borders of the zones of balance fork operational scale Minute (98.60-97.50-96.40) and Minute (97.00-96.40-95.70).
The breakdown of the resistance level at 100.05 on the line of control UTL fork operational scale Minuette – variant development of the upward movement #USDX to the borders of the channel 1/2 Median Line (100.90-101.75-102.65) Minuette operational scale fork.
The layout of the #USDX movement options from April 10, 2020 is shown on the animated chart.
Spot Silver
The development of the Spot Silver movement from April 10 2020 is likely to continue in the…

April 9, 2020 : GBP/USD Intraday technical analysis and trade recommendations.

Recently, the GBPUSD has reached new LOW price levels around 1.1450, slightly below the historical low (1.1650) achieved in September 2016.That’s when the GBP/USD pair looked very OVERSOLD around the price levels of 1.1450 where a double-bottom reversal pattern was recently demonstrated.Technical outlook will probably remain bullish if bullish persistence is maintained above 1.1890-1.1900 (Double-Bottom Neckline) on the H4 Charts.Bullish breakout above 1.1900 (Latest Descending High) invalidated the bearish scenario temporarily & enabled a quick bullish movement to occur towards 1.2260.Next bullish targets around 1.2520 and 1.2680 were expected to be addressed if sufficient bullish momentum was maintained.However, early bearish pressure signs have originated around 1.2470 leading to another bearish decline towards 1.2265.That’s why, H4 Candlestick re-closure below 1.2265 is needed to hinder further bullish advancement and enhance the bearish momentum on the short term.If so, Initial Bearish target would be located around 1.1900 provided that quick H4 bearish closure below 1.2265 is achieved.On the other hand, the current bullish persistence above 1.2265 would probably enhance another bullish pullback movement up to the price levels of 1.2500-1.2550 where bearish rejection should be expected.Trade recommendations :Conservative traders should be waiting either for another bullish pullback towards 1.2500 or another H4 bearish closure…

Latvia Trade Deficit Narrows In February

Latvia’s trade deficit decreased in February, amid a rise in exports and imports, data from the Central Statistical Bureau showed on Thursday. The trade deficit decreased to EUR 93.6 million in February from EUR 160.7 in the same month last year. In January, trade deficit was EUR 93.0 million. Exports grew 9.5 percent annually in February and imports rose 2.2 percent. In February, the major export partners are Lithuania, Estonia, Sweden and Germany and those for import are Lithuania, Germany, Poland and Estonia. The material has been provided by InstaForex Company – www.instaforex.com…

April 9, 2020 : EUR/USD Intraday technical analysis and trade recommendations.

Since December 30, the EURUSD pair has trended-down within the depicted bearish channel until the depicted two successive Bottoms were established around 1.0790 then 1.0650 where the EUR/USD pair looked OVERSOLD after such extensive bearish decline.Few weeks ago, the EURUSD pair has expressed significant bullish recovery around the newly-established bottom around 1.0650.The following bullish engulfing H4 candlesticks as well as the recently-demonstrated ascending bottoms indicated a high probability bullish pullback at least towards 1.0980 and 1.1075 (Fibonacci Level 50%).Key Supply-Levels in confluence with significant Fibonacci levels are located around 1.1075 (50% Fibonacci) and 1.1175 (61.8% Fibonacci) where bearish rejection was highly-expected.Moreover, a Head & Shoulders continuation pattern was demonstrated around the price levels of (1.1000 – 1.1075).Shortly after, further bearish decline was demonstrated towards 1.0800 where the nearest demand level to be considered was located near the backside of the broken channel (1.0800-1.0750).Early signs of Bullish rejection have been manifested around the price zone of (1.0800-1.0750) leading to the current bullish spike up to 1.0930.This supports the bullish side of the market as long as bullish persistence is maintained above the recently-established ascending Bottom around 1.0770.Further bullish advancement is expected to pursue towards 1.1000 and 1.1075.On the other hand, any bearish…