Forex Today: Fed announces QE, investors still scared

FXStreet Team FXStreet

Here is what you need to know on Tuesday, March 24^th:

The number of coronavirus cases worldwide has increased to 372,500, while the death toll is up to 16,381. In the US, the number of cases jumped to 41,700. Italy reported fewer cases and fewer deaths for a second consecutive day, although the numbers are still huge. Fear and uncertainty remain high, as the market could only speculate about the economic effects of the current crisis.

The US Federal Reserve announced its largest-ever easing package ahead of the US opening. The central bank said it would buy unlimited Treasuries and mortgage-backed securities in order to support the financial market. The central bank also established loan facilities, two to support credit to large employers, and another so-called TALF, the Term Asset-Backed Securities Loan Facility, to support the flow of credit to consumers and businesses.

Wall Street bounced off early lows, but the three major indexes closed in the red, as despite Fed’s massive stimulus the US Senate failed to pass a stimulus package. Congress will likely continue to discuss it next Friday.

US Treasury yields edged lower, with the yield on the benchmark 10-year note falling to 0.69% to finally settle at 0.78%.

The EUR/USD pair faltered at around 1.0830, finished the day with modest gains above 1.0700.

GBP/USD settled around 1.1500. UK PM Johnson addressed the nation after the US close. "I must give the British people a simple instruction, you must stay at home," Johnson said. He also announced the UK would close all non-essential stores, while public gatherings with more than 2 people banned.

Japan will release the Jibun Bank Manufacturing PMI while Australia will publish the Commonwealth Bank’s indexes on manufacturing and services. All of them are preliminary estimates for March and may be early indicators of the results of European and US indexes to be out later in the day.

Crypto Today: Bitcoin bulls push price back above $6000; but technical vulnerabilities remain

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FXStreet Team

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EUR/USD remains depressed below mid-1.1800s; downside potential seems limited

The EUR/USD pair attracts some sellers for the second consecutive day on Tuesday and hovers below mid-1.1800s amid a relatively quiet trading action during the Asian session. The broader fundamental backdrop, however, warrants some caution for bearish traders before positioning for deeper losses.

GBP/USD trades with negative bias, eyes 1.3600 ahead of UK jobs data

The GBP/USD pair trades with a negative bias for the second straight day, though it lacks bearish conviction and holds above the 1.3600 mark through the Asian session on Tuesday. Traders now look forward to the release of the UK monthly jobs report, which will influence the British Pound and provide some impetus to the currency pair.

Gold declines as trading volumes remain subdued due to holidays in China

Gold price extends its losses for the second successive session, trading around $4,930 per troy ounce during the Asian hours on Tuesday. Gold price is trading nearly 0.7% lower at the time of writing as trading volumes stayed thin due to market holidays across China, Hong Kong, and other parts of Asia.

Top Crypto Gainers: Stable, MemeCore and Nexo rally test critical resistance levels

Stable, MemeCore, and Nexo are among the leading gainers in the crypto market over the last 24 hours, while Bitcoin remains below $70,000, suggesting renewed interest in altcoins among investors.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.