Silver investments: global markets shudder! Powell admits the US economy may be in the recession! Silver price narrow shock!

On Friday (March 27), the spot silver market is still in a narrow trading pattern, silver prices are trading around $14.60, the trend began to fall into consolidation.

The price of silver in Japan was flat, trading in a range of $14.00- $15.00 before closing down slightly and remaining below the average.

As for the outbreak, according to real-time statistics from Johns Hopkins university in the United States, as of 9:31 Beijing time, the total number of confirmed covid-19 cases in the United States has reached 85505, with a total of 1288 deaths. New York state has 39,125 confirmed cases, making it the epicenter of the outbreak in the United States.

The outbreak has also hit the job market hard. Strict measures to contain the spread of the coronavirus have brought us economic activity to a standstill, triggering a wave of job cuts that could end the longest employment boom in us history.

The number of americans filing new claims for unemployment benefits surged to 3.283 million last week as a result of the outbreak, labor department data showed Thursday. And more than four times the previous record of 695,000 set in 1982. Initial jobless claims data have been published since 1967.

“The data sent a chill through the financial markets,” said Quincy Krosby, chief market strategist at prudential financial. If this data continues for three to four weeks, it will trigger demand for more fiscal support “and more monetary policy support from the fed.

Some traders are even speculating that more than 3.2 million people are applying for unemployment benefits this time, and there may be another 1 million who will not be able to apply. We need to be prepared for a surge to 6 million next week.

In a post on social media after the data’s release, Dr. Roubini, known as Dr. Doom, said the unemployment figures had surpassed the financial crisis and the question was whether they would be worse than the great depression.

Shortly before the claims data were released, fed chairman colin Powell said the economy was “probably in recession” but progress in containing the spread of the coronavirus would determine when full economic activity could resume. His comments amounted to a rare admission by a fed chairman that the economy may have started shrinking before the data confirmed it.

For decades, the public communications of fed chairmen have been carefully choreographed because even subtle signals can have an impact on investors.

In an interview with “NBC Today,” Powell said the fed’s recent steps will help provide capital to businesses in need and will be especially useful once the outbreak is contained. “The first priority is to contain the spread of the disease before resuming economic activity.”

As many americans stay in the home, pay close attention to the situation development, Powell choice in a morning television shows in an interview, this in itself is part of the information he wants to pass, that is to let people prepared for the forthcoming downturn economic data, exhort people to be patient don’t eager to return to work, and to ensure that the fed will be “active” to take action, to help businesses and families through.

Technical analysis:

The dollar

On the daily chart, the dollar index continued to come under pressure after plunging more than 150 points last day, with the U.S. index trading around 99.10, close to the series of dense average support below. On the technical side, the MACD red kinetic energy column continues to weaken, the RSI index remains stable around 50, and the KDJ random index approaches 50 from the overbought level. There is still room for further decline.

On the 4-hour chart, the dollar index is still in the beginning of the 103 level of the shock down trend, has now broken through the 50 moving average, is testing the key 100 moving average and 200 moving average intersection 98.87 level, focus on whether to stand this moving average. In technical terms, the MACD green kinetic energy column is stable, RSI index has just touched the oversold level, KDJ random index is still in the oversold level, alert to the possibility of correction rebound.

silver

On the daily chart, silver is in a correction after several days of gains, trading above the $14 level but still below the main moving average. From the technical perspective, the MACD red kinetic energy column appears initially, the RSI index is stable near the 50 level, and the KDJ random index is going up through the 50 level, and there is still upside space.

On the 4-hour chart, silver is stuck in an extremely narrow range, with short-term resistance at $14.77 above the 100-term moving average and support at $13.35 below the 60-term moving average. In technical terms, the MACD green kinetic energy column is exceptionally weak, the KDJ random index held steady above the 50 level, short or further shock.

fundamentals Positive factors :

  1. According to real-time statistics from Johns Hopkins university, the number of confirmed covid-19 cases in the United States has surpassed that of Italy and China, with a total of 82,404 confirmed cases in the United States. The United States has overtaken China and Italy to become the world’s top country in the number of confirmed cases. Johns Hopkins university’s real-time surveillance system shows more than 17,000 new cases and more than 250 more deaths in the United States in the past 24 hours or so.
  2. The labor department reported on Thursday that initial claims for state unemployment benefits surged to 3.28 million from 282,000 the previous week. That beat the peak of 665,000 hit during the Great Recession and the all-time high of 695,000 set in October 1982.
  3. Federal reserve chairman colin Powell said the U.S. economy was “probably in recession,” but progress in containing the spread of the coronavirus would determine when the economy fully recovered. His comments were a rare admission by a fed chairman that the economy may be shrinking even before the data confirm it.
  4. The epidemic is still heating up in Europe, with Italy, Spain, Germany and France being the most serious countries. The death toll in Spain jumped to the second highest in the world, with Italy overtaking China in deaths.

Fundamental negative factors:

  1. The dow closed up 1,351.62 points, or 6.4%, at 22,552.17, ending its biggest three-day rally since 1931. Over the past three days, the dow has risen more than 21.3%, its best three-day winning streak since October 1931, as a $2 trillion bailout helped pull it out of a technical bear market.
  2. The U.S. senate on Wednesday voted unanimously to pass a $2 trillion bill aimed at helping the unemployed and industries hit by an outbreak of novel coronavirus.
  3. The federal reserve said on Monday it would buy as many bonds as possible to stabilize financial markets and guarantee direct loans to companies, fueling a further recovery in risk sentiment.
  4. New York’s governor said on Wednesday that there were early signs that restrictions were slowing the spread of the coronavirus in his state.

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