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Coronavirus cure hopes keep risk buoyed despite US-China spat; ECB – key

Fed’s willingness to do ‘whatever it takes’ and hopes over the coronavirus treatment continued to buoy the risk tone in Asia despite fresh US-China tensions brewing up around the trade deal

The US dollar did find some haven bids on US President Donald Trump’s words of caution. Trump said that the trade deal with China has been “upset very badly” by the virus issue. Also, dismal Japanese macro news heightened global recession fears. However, the risk-on action in the Asian equities and US stock futures was unperturbed while the oil-price recovery gathered further steam, as WTI rose nearly 15% to regain a $17 mark. Gold prices consolidated the dovish FOMC led gains above $1700.

Within the G10 currency basket, USD/JPY turned south to test 106.50. The Antipodeans recovered ground, as the greenback failed to sustain the recovery gains across its main peers. AUD/USD jumped back on the bids above 0.6550 while the Kiwi bounced to near 0.6150 despite dismal Chinese Official and Caixin Manufacturing PMIs. USD/CAD remains pressured below 1.4000 amid firmer oil prices.

EUR/USD eyes April loss, focus on Eurozone data and ECB

EUR/USD is likely to end April on a negative note, as the German data is expected to show an uptick in the jobless rate, and the European Central Bank (ECB) has little or no room to sound hawkish.

At press time, the pair is trading around 1.0860, down over 1% from the monthly opening rate of 1.1039. The shared currency has been offered this month on the inability of the European nations to agree to a comprehensive coronavirus stimulus package and the resulting fears of a prolonged economic downturn. The occasional haven demand for the US dollar also added to the bearish tone around EUR/USD.

According to Trading Central (3rd party RIA) the EURUSD is short positions below 1.0990 with targets at 1.0725 & 1.0630 in extension.

* Past performance is not a guarantee of future performance

Number of Lots:Required Margin:Risk Management (50%):Potential Profit/Loss 1.0725
1€ 3,333.33€ 1,666.67€ 1,150.88
5€ 16,666.67€ 33,333.33€ 5,754.37
10€ 33,333.33€ 66,666.67€ 11,508.75
25€ 83,333.33€ 166,666.67€ 28,771.87
50€ 166,666.67€ 333,333.33€ 57,543.75

GBP/USD: Pressured below 1.2500, focus on UK PM Johnson’s coronavirus briefing

GBP/USD extends pullback moves from 1.2430 to currently near 1.2465, down 0.05% on a day, while heading into the London open on Thursday. The Cable earlier weighed down by the US dollar’s pullback recovery but seems to recover the losses ahead of the coronavirus briefings by the UK PM Boris Johnson.

Weekly support line around 1.2365 becomes the immediate level to watch during the further weakness while 1.2520 acts as nearby resistance.

According to Trading Central (3rd party RIA) the GBPUSD is short positions below 1.2745 with targets at 1.2160 & 1.1950 in extension.

* Past performance is not a guarantee of future performance

Number of Lots:Required Margin:Risk Management (50%):Potential Profit/Loss 1.2160
1€ 3,829.22€ 1,914.61€ 2,854.17
5€ 19,146.08€ 38,292.17€ 14,270.85
10€ 38,292.17€ 76,584.34€ 28,541.70
25€ 95,730.42€ 191,460.85€ 71,354.25
50€ 191,460.85€ 382,921.69€ 142,708.50

Oil prices rise on early signs of slowing US glut build

Oil prices rose on Thursday, building on big gains in the previous session on signs the U.S. crude glut is not growing as fast as expected and that gasoline demand battered by Covid-19 restrictions is starting to pick up.

West Texas Intermediate (WTI) crude futures climbed to a high of $16.25 a barrel and were up 7.2%, or $1.08, at $16.14 at 0147 GMT. The U.S. benchmark surged 22% on Wednesday.

Brent crude rose 3.9%, or 88 cents, to $23.42 a barrel in light trading, with the June contract expiring on Thursday. The contract hit a high of $23.65 in early trading, having posted a 10% gain on Wednesday.

According to Trading Central (3rd party RIA) the WTI is long positions ABOVE 15.80 with targets at 17.75 & 18.50 in extension.

* Past performance is not a guarantee of future performance

Number of Lots:Required Margin:Risk Management (50%):Potential Profit/Loss 18.50
0.5€ 709.68€ 354.84€ 1,428.57
1€ 1,419.35€ 709.68€ 2,857.14
5€ 7,096.77€ 3,548.39€ 14,285.71
10€ 14,193.55€ 7,096.77€ 28,571.43
20€ 28,387.10€ 14,193.55€ 57,142.86