Risk-off sentiment escalated in the markets after Federal Reserve officials highlighted the need for US policymakers to agree on a new round of stimulus to support the economic recovery. The S&P500 lost 2.4 per cent in a reversal that accelerated toward the close, marking its fifth down day in six trading sessions. The benchmark is now more than 9 per cent off of its record high in August..
Meanwhile euro pushed below 1.17 while in rupee term it hit the lowest level since mid Mid-July. Latest economic figures for the month of September precisely reflecting the re-lock impact which promted traders to bid dollar against euro. On the other hand, pound continues to trade in losing streak amid concerns of second wave outbreak as well as dollar recovery was the prime reason for cable to lose the momentum.
US Market Tumbles On Economy Slowdown Fears
The US stock market finished volatile session steep lower on Wednesday, 23 September 2020, as risk-off selling triggered after data showing a cooling of U.S. business activity and Federal Reserve officials highlighted the need for Congress to agree on a new round of stimulus to support the economic recovery. Meanwhile, worries over a coronavirus second wave and an increasingly contentious US presidential election also fuelled selloff.
Investors were disappointed that Washington lawmakers haven’t reached an agreement on more stimulus and uneasy over speculation that the US presidential election could drag on due to slow vote counts or legal challenges. Federal Reserve Chair Jerome Powell said on Wednesday that the central bank was not planning any major changes to its Main Street Lending Program, while saying that both the Fed and Congress need to stay with it in working to bolster the economic recovery.
TREND : BEARISH
Time : 24/09/2020
Pivot : 1.1683
Technical View : LONG ABOVE 1.1703
Target : 1.1723, 1.1731, 1.1756, 1.1788
Technical View : SHORT BELOW 1.1663
Target : 1.1643, 1.1632, 1.1611, 1.1574