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Brazil Services Sector Shrinks At Record Pace On Covid-19 Disruption

Brazil’s service sector shrunk at the fastest pace in the survey’s 13-year history in March as businesses were shut and demand shrunk due to the coronavirus, or Covid-19, outbreak, survey data from IHS Markit showed on Friday. The headline seasonally adjusted IHS Markit Brazil Services Business Activity Index plummeted by nearly 16 points to 34.5 from 50.4 in February. A reading below 50 suggests contraction in activity. New work fell at the fastest pace since the survey began in March 2007, thanks to cancelled orders and business shutdowns. Export demand dropped at a rapid rate that exceeded the fall in total demand, mainly due to containment measures adopted globally to slow the spread of the Covid-19 pandemic. Employment fell at the fastest rate since October 2016, as businesses shed jobs in a bid to reduce operating costs amid shutdowns. Average costs increased sharply in March, but the overall rate of input price inflation was the slowest since last November. A strong US dollar and a corresponding increase in the price of imported items, pushed up purchasing costs. Charge inflation remained modest, but was the fastest in three months. Business confidence eroded sharply with expectations being the weakest since the survey…

U.S. Dollar Higher Amid Coronavirus Fears

The U.S. dollar firmed against its major counterparts in the European session on Friday, as investors sought safe-haven assets following grim Eurozone business survey, as well as continued COVID-19 concerns after virus cases exceeded one million. The IHS Markit eurozone services purchasing managers index slumped to a reading of 26.4 in March from 52.6 in February, the worst-ever reading in the history of the series, as the covid-19 pandemic and associated measures taken to contain the outbreak through Europe weighed heavily on business performance. The number of confirmed coronavirus cases crossed the 1 million mark globally with a death toll of 53,030, according to the new tally from Johns Hopkins University. Around 1,015,403 people have been diagnosed with the novel coronavirus across the world. Investors didn’t react to the disappointing U.S. jobs data for March. Data from the Labor Department showed that the U.S. employment fell much more than expected in the month of March. The report said employment plunged by 701,000 jobs in March after jumping by an upwardly revised 275,000 jobs in February. Economists had expected employment to slump by 100,000 jobs compared to the addition of 273,000 jobs originally reported for the previous month. With the much…

Dollar Ticks Up Following U.S. Jobs Data

Following the release of U.S. nonfarm payrolls data for March at 8:30 am ET Friday, the greenback edged up against its major counterparts. The greenback was trading at 108.50 against the yen, 0.9781 against the franc, 1.2256 against the pound and 1.0780 against the euro around 8:31 am ET. The material has been provided by InstaForex Company – www.instaforex.com…

GBP/USD: plan for the US session on April 3. Bears are counting on a major flight of the pound down. The support of 1.2315

To open long positions on GBPUSD, you need:Bears managed to gain a foothold below the support of 1.2315 in the first half of the day after very poor data on activity in the UK services sector. This is clearly visible on the 5-minute chart. However, the continuation of the downward trend in the pound will depend on data on the state of the US labor market. In the second half of the day, the bulls urgently need to return a pair back to the level of 1.2315, since only in this scenario will it be possible to maintain the advantage. If the decline continues in GBP / USD, it is best to return to long positions only after the support test of 1.2150 or to rebound from the larger minimum of 1.1985, in the expectation of correction of 60-70 within the day. A breakout and consolidation above 1.2315 will push purchases to the maximum area of 1.2473, where I recommend fixing the profits.To open short positions on GBPUSD, you need:The bears coped with the weekly task and broke below the support of 1.2315 from the 5th time. Sellers of the pound in the second half of the day need to achieve…

Japanese Yen Higher Amid Rising Risk Aversion

The Japanese yen climbed against its major counterparts in the Asian session on Friday amid rising risk aversion, as oil prices retraced gains and a private survey showed that China’s services sector contracted further in March. Survey data from IHS Markit showed that China’s services activity contracted in March due to the impact of the COVID-19 outbreak on demand and supply chains. The Caixin services Purchasing Managers’ Index rose to 43.0 in March from 26.5 in February. However, a score below 50 indicates contraction. Oil prices fell after soaring on Thursday following President Donald Trump’s comment that he expects Russia and Saudi Arabia to co-operate on output reduction. The United States reported a record 6.648 million jobless claims last week led by shut downs to contain the virus. Investors await the March payroll data due at 8:30 am ET. Economists are expecting a drop of 100,000 jobs last month, while the unemployment rate is seen rising to 3.8 percent. The number of confirmed coronavirus cases crossed the 1 million mark globally with a death toll of 53,030, according to the new tally from Johns Hopkins University. Around 1,015,403 people have been diagnosed with the novel coronavirus across the world….

Trading plan for EUR/USD for April 03, 2020

Technical outlook:EUR/USD has dropped to 1.0782 lows today, and is seen to be trading around 1.0792 levels at this point in writing. Please note that the NFP figures are expected to be out in another 10 minutes and that might possibly trigger the rally that we have been waiting for in the EUR/USD pair. Technically, the single currency pair has dropped into the vicinity of fibonacci 0.618 support of the previous rally between 1.0636 and 1.1150 respectively. A bullish bounce remains high probability as long as prices stay above the 1.0636 support. Immediate resistance is seen around 1.0865, followed by 1.0975 respectively; and a push above those will be extremely encouraging for the bulls to continue further. Overall structure still remains bullish against 1.0636 levels and if this holds, EUR/USD should be staging a rally towards 1.1500 and 1.1900 levels in the next few weeks time. Trading point of view, it is good to remain long with risk at 1.0636 levels.Trading plan:Remain long, stop @ 1.0636 target above @1.1500Good luck!The material has been provided by InstaForex Company – www.instaforex.com…

Analysis of EUR/USD on April 3, 2020

Waiting for Nonfarm Payrolls
Hello, dear colleagues!
The main event of today and the whole week will be data on the US labor market, which will be published at 13:30 London time. Economists’ forecasts are disappointing. It is expected that the unemployment rate will rise from 3.5% immediately to 3.8%, and the growth of the average hourly wage will be the usual 0.2%. As for the creation of new jobs in non-agricultural sectors of the American economy, this indicator may fall to minus 100 for the first time since the financial and economic crisis of 2008.
In principle, market participants are well aware that in the context of the ongoing rampant COVID-19 around the world, strong data on the US labor market can not be expected. Interest is aroused by the actual figures and the reaction of investors to them. Has the coronavirus epidemic had such a significant impact on the economy of the United States of America, or will it be a little later? There will certainly be negative consequences for the world’s leading economy. The question is when exactly to expect a peak?
So far, it is in the United States that the most severe outbreak of a new type of coronavirus is…

EUR/USD. April 3. 1 million cases of COVID-2019 virus in the world. The euro is preparing for a new fall. The trader is waiting

EUR/USD – 1H.

Hello, traders! According to the hourly chart, everything goes according to plan. The new downward trend line clearly indicates the “bearish” mood of most traders. Thus, it will be possible to sell the pair until the quotes close above this very trend line. In general, the EUR/USD pair continues the process of falling on April 3. News coming from various parts of the world remains disappointing. The COVID-2019 virus continues to spread, and today the official number of infected people around the world has exceeded 1,000,000. Most of the sick citizens are in America, but this does not make any negative impression on the American currency. Also yesterday, traders were very happy to miss the important economic report from the US on unemployment…
EUR/USD – 4H.

On the 4-hour chart, the EUR/USD pair performed a rebound from the corrective level of 38.2% (1.0964) and a reversal in favor of the US dollar with the resumption of falling quotes. As a result, at the moment, traders have worked out the Fibo level of 23.6% (1.0840) and now either there will be a rebound from this level or closure under it. In the first case, a reversal will be made in favor of…

Fractal analysis of the main currency pairs for April 3

Forecast for April 3 :Analytical review of currency pairs on the scale of H1:For the euro / dollar pair, the key levels on the H1 scale are: 1.0978, 1.0916, 1.0876, 1.0791, 1.0761, 1.0704 and 1.0622. Here, we are following the development of the descending structure of March 27. The continuation of movement to the bottom is expected after the price passes the noise range 1.0791 – 1.0761. In this case, the target is 1.0704. Price consolidation is near this level. For the potential value for the bottom, we consider the level of 1.0622, upon reaching which, we expect a pullback to the top.Short-term upward movement is possibly in the range 1.0876 – 1.0916. The breakdown of the last value will lead to an in-depth correction. Here, the target is 1.0978. This level is a key support for the downward structure.The main trend is the descending structure of March 27Trading recommendations:Buy: 1.0876 Take profit: 1.0914Buy: 1.0918 Take profit: 1.0978Sell: 1.0760 Take profit: 1.0705Sell: 1.0702 Take profit: 1.0622For the pound / dollar pair, the key levels on the H1 scale are: 1.2879, 1.2654, 1.2550, 1.2315, 1.2216 and 1.2099. Here, we are following the development of the upward cycle of March 19. Short-term upward…