Weekly

The novel coronavirus epidemic broke out in Europe and the United States. Countries continued to take turns to rescue the market. The Bank of England cut interest rates by 0.15% yesterday.  Risk sentiment is rising.

The central banks of all countries, seeing the sharp decline in the global stock market, are also prepared and dare not neglect.  Of the two-week surge in the US dollar, sterling has been the hardest hit.

The market regards the US dollar as a financial haven for the epidemic, but the British government's response to the epidemic has triggered a wave of panic, with sterling being sold off.

The two-week decline has exceeded 15%, and the U.S. foreign exchange weighted index has also recorded its largest eight-year rise in history.

The Bank of England also cut interest rates to 0.1% after the European Central Bank bought 750 billion euros of bonds and Trump sent money directly from the United States. This is the second emergency rate cut by the Bank of England in the past two weeks.

And promised to increase the 200 billion pound debt purchase plan.  The central bank's water release this time was the third day after the new governor Bailey took office, and he immediately made a move.

At present, Britain's interest rate has dropped to a record low of nearly zero. The drastic action shows that the economic impact of the epidemic is also very disastrous. With the joint rescue operations of various countries,

The global stock market is also gradually returning to stability. Although the recent trend of financial markets has been like a roller coaster, the tide of closing positions and replenishing positions has begun to ebb away. What has not yet subsided is the psychological mood of investors, more than the breakdown of funds.

U.S. stocks saw the Dow Jones Industrial Average below 20,000 last night and began buying at a low level. Although the U.S. dollar is still on the rise, the rebound in the asset market has also reduced the safe-haven buying of the U.S. dollar.

As a result, gold prices started to rebound from a low level.  Seeing the gold price again this afternoon and challenging above US$ 1,500, the gold price is expected to stabilize step by step and begin to regroup and rise after consolidation.

The lower 1450 can be confirmed as the mid-term bottom, which can be absorbed by bargain hunting.  And after this period of US dollar rally returns, I believe there will be funds to reabsorb gold as a hedge.