S&P 500, Euro, US Dollar, EUR/USD Price Analysis
- It was another big week for volatility across global markets.
- The S&P 500 is now off by 30% from the all-time-high that was set just a month ago.
- The US Dollar has been on a wild ride[1] – in two weeks going from a fresh yearly-low up to a fresh three-year-high.
S&P Digs into Support After 30% Hit from Coronavirus
The panic continues as matters have moved-up to the next level in the United States with a near-full shutdown of New York City in response to the continued growth of the novel coronavirus. Going by the expectation for exponential growth, it’s expected that the virus will continue to infect the population creating considerable strain on the medical system. And while none of this is necessarily ‘new’ news nor is it unexpected, these unprecedented actions bring with them a number of questions around a global economy that was already being propped-up by almost a decade’s worth of accommodation.
Both monetary and fiscal policy in the United States have been aimed squarely at off-setting at least some impact from the growing crisis. But, one of the few was to slow the spread or ‘flatten the curve’ is social distancing – which means an almost certain continued disruption as people are forced to self-isolate.
The S&P 500 is already off by 30% in a little over a month[2]. The one bright spot here is the fact that through this week, despite a general sense of bearish behavior continuing in global markets, the S&P has clung to some element of support. The bulk of this week’s losses on the S&P 500 took place on Monday as the prior Friday rally was faded-out and then some. Sellers were
