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Will Powell power up markets and pummel the dollar? Coronavirus, geopolitics weigh

Risk-off: The US Senate is advancing a bill to punish China over coronavirus. Lindsey Graham, a Republican Senator, accused China of deception over the virus. The world’s largest economies are at loggerheads

The US warning: Another adverse factor is the warning by Dr. Anthony Fauci. The White House’s medic warned of many deaths and sufferings if the US economy opens early. The University of Washington foresees 147,000 US coronavirus deaths by August. It currently stands at around 80,000.

Powell: The Fed Chair will speak ahead of the US market open and will likely comment on negative rates – prospect markets priced last week and that President Donald Trump wants. So far, officials have rejected the idea that has been controversial in Japan and in the eurozone. He may also comment on falling US inflation.

The New Zealand dollar has been hit hard by the Reserve Bank of New Zealand’s decision to expand its bond-buying scheme, a move that surprised markets.

GBP/USD is trying to recover after a slide below 1.23 on Tuesday. The government wants to restart the real-estate market and considers new taxes to fill its dwindling coffers, after extending its furlough program – supporting people who are unable to work. The deficit is set to leap to £337 billion this year.

According to Trading Central (3rd party RIA) the NZDUSD is short positions below 0.6040 with target at 0.5948.

* Past performance is not a guarantee of future performance

Number of Lots:Required Margin:Risk Management (50%):Potential Profit/Loss 0.5948
1€ 2,774.69€ 1,387.35€ 644.98
5€ 13,873.47€ 27,746.95€ 3,224.90
10€ 27,746.95€ 55,493.90€ 6,449.80
25€ 69,367.37€ 138,734.74€ 16,124.50
50€ 138,734.74€ 277,469.48€ 32,249.00

EUR/GBP eases from tops, back near 0.8840 post-UK GDP

What to look for around GBP

The recovery in the British Pound appears to have met quite a significant barrier around the 1.2600 neighbourhood vs. the greenback (200-day SMA) and the 0.8860 area vs. the euro (April peaks). Moving forward, the sterling is expected to remain under pressure against the backdrop of rising scepticism over the handling of the coronavirus crisis by the UK government and the potential re-opening of the economy, all amidst the forecasted deep recession the country is expected to face in the first half of the year. Further weakness is expected to hit the quid over the prospect of hard UK-EU trade negotiations and the tangible probability that the BoE could pump in extra stimulus at the next meeting

According to Trading Central (3rd party RIA) the EURGBP is long positions above 0.8761 with target at 0.9016.

* Past performance is not a guarantee of future performance

Number of Lots:Required Margin:Risk Management (50%):Potential Profit/Loss 0.9016
1€ 3,333.33€ 1,666.67€ 2,198.99
5€ 16,666.67€ 33,333.33€ 10,994.95
10€ 33,333.33€ 66,666.67€ 21,989.90
25€ 83,333.33€ 166,666.67€ 54,974.75
50€ 166,666.67€ 333,333.33€ 109,949.50

Gold gains as investors bet on more stimulus

Gold rose on Tuesday on expectations of more stimulus from the U.S. Federal Reserve to support an economy battered by coronavirus-induced restrictions, while an easing dollar lent further support.

Spot gold rose 0.8% to $1,709.04 per ounce. U.S. gold futures rose 0.9% to $1,713.20 per ounce.

“The Fed is going to start buying bond exchange traded funds (ETFs) for the first time ever. This is big… here’s more stimulus coming to the table and everybody knows when there’s more stimulus, you want to own more gold,” said Michael Matousek, head trader at U.S. Global Investors.

According to Trading Central (3rd party RIA) the GOLD is long positions above 1655.00 with targets at 1745.00 & 1790.00 in extension..

* Past performance is not a guarantee of future performance

Number of Lots:Required Margin:Risk Management (50%):Potential Profit/Loss 1745
0.5€ 3,923.96€ 1,961.98€ 1,935.48
1€ 7,847.93€ 3,923.96€ 3,870.97
5€ 39,239.63€ 19,619.82€ 19,354.84
10€ 78,479.26€ 39,239.63€ 38,709.68
20€ 156,958.53€ 78,479.26€ 77,419.35

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