Daily Alert – Thursday 5th March 2020: Roller-coaster sentiment as virus fears dominate

Mark NugentDaily Alert, March 2020

Daily Alert – Thursday 5th March 2020: Roller-coaster sentiment as virus fears dominate

Sentiment is very changeable this week. We got a boost yesterday from US ISM Non-Manufacturing PMI and Joe Biden’s success in the US Super Tuesday primaries, ending up moderately risk-on by yesterday’s close. However, today we are back to moderately risk-off as of 1330 GMT.

The USD and CAD have dropped significantly this week after their respective rate cuts. Although there is an expectation of rate cuts in other countries, traders are not pricing it in. Instead they are reacting to the actual cut itself, as per US and Canada. This should give us some opportunity when and if we see cuts by other Central Banks next week

Due to the changeable sentiment and as it’s Thursday I am finished trading for the week.

Have a great weekend and I’ll be back on Monday.

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