HomeContributorsFundamental AnalysisUS Stocks Slump On The Rising Coronavirus Cases

US Stocks Slump On The Rising Coronavirus Cases

US stocks fell sharply yesterday as investors remained fixated on the rising number of coronavirus cases in the United States. The Dow Jones declined by more than 600 points while the S&P 500 and Nasdaq 100 declined by more than 2%. The number of new cases in the United States has continued to rise even as the country rolled out vaccinations. Investors were also looking ahead to the runoff election in Georgia, which will determine the composition of the Senate.

The price of crude oil rose in overnight trading even as talks between OPEC+ members continued for the second day. The members are deliberating about the February output. Whereas some members support a gradual supply increase, others are advocating for the status quo. The outcome of this meeting will have an impact on future crude oil prices. In a statement yesterday, Mohammed Barkindo, the OPEC Secretary-General, warned about the uncertainties of the oil prices in the first half of the year.

The economic calendar will have several important events today. In Switzerland, the statistics office will publish the latest consumer price index data, which is an important inflation measure. The data will possibly show that the country’s inflation is still in the negative zone. In Germany, the bureau of statistics will release the December employment numbers while in the US, the Institute of Supply Management will publish its manufacturing PMI data.

USD/CHF

The USD/CHF price is still under intense pressure due to the relatively weak dollar. It is hovering around the lowest level since 2015. On the daily chart, it is below all the moving averages while the Stochastic oscillator is below the oversold level. The price is also below the dots of the Parabolic SAR indicator. Therefore, the pair’s path of least resistance is downward since bears are still in control.

EUR/USD

The EUR/USD pair bounced back ahead of the outcome of the Georgia election. It is trading at 1.2271, which is higher than the overnight low of 1.2240. On the hourly chart, the price is still above the 25-day and 15- day moving averages. It is slightly below the highest level in 2020. The RSI is at 65, which is usually a bullish signal. Therefore, for today, the price may head higher but volatility is still possible.

BTC/USD

The BTC/USD pair is attempting to recover after falling sharply yesterday. It is trading at $32,394, which is higher than yesterday’s low of below $31,000. The price is below the weekend high of almost $35,000. On the daily chart, it remains above the moving averages, while the RSI is rising. Therefore, the pair will possibly continue rising as bulls target the $35,000 level.

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