{"id":166194,"date":"2020-03-10T08:45:26","date_gmt":"2020-03-10T12:45:26","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=166194"},"modified":"2020-03-10T08:22:36","modified_gmt":"2020-03-10T12:22:36","slug":"dont-blame-covid-19-for-circuit-breakers","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2020\/03\/dont-blame-covid-19-for-circuit-breakers\/","title":{"rendered":"Don\u2019t Blame COVID-19 For Circuit Breakers"},"content":{"rendered":"
March 10, 2020<\/div>
\r\n<\/div><\/div>

By <\/strong>Orbex<\/strong><\/a><\/p>\n

The bloodbath has begun.<\/p>\n

The Monday morning trading session was one for the history books. The S&P\u2019s drop flipped the market switches following a 7% plunge.<\/p>\n

Despite all eyes turning to the oil price war which we saw escalating over the weekend, there is way more to the capital flight than just that.<\/p>\n

And there is far more than just the coronavirus outbreak and US\u2019 delayed response to it.<\/p>\n

Dollar Weak Since Sanders Emerged as Front-Runner<\/strong><\/h2>\n

The international and political implications of a Sanders win are what first showed the initial signs of capital flight to the safe-havens, namely the yen and Swiss franc.<\/p>

\r\n
\r\n

Free Reports:<\/p><\/div>\r\n

\r\n

<\/a>\r\n\t Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p>

\r\n
\r\n
\r\n

<\/a>\r\n\t Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p>

\r\n<\/div>\r\n

\r\n
<\/div>\n

Bernie is well known for his focus on health care and has succeeded in winning the support of African American and Hispanic voters.<\/p>\n

When combined with the coronavirus outbreak and how poorly the Trump administration\u00a0has\u00a0responded to the health emergency\u00a0so far, Bernie\u2019s \u201cMedicare for All\u201d was a clear component of his win in Nevada\u2019s caucuses.<\/p>\n

Despite Biden\u2019s bounce back following the Super Tuesday victory, the possibility of a full Democrat House remains real now, posing another threat to equities markets.<\/p>\n

Virus Emergency Opens Doors to Coordinated Response, But We See None Yet<\/strong><\/h2>\n

Although we can\u2019t say that Japan, Italy, China, the US, and others have taken the correct steps at the right time, we can expect fiscal and monetary measures to take place soon.<\/p>\n

It isn\u2019t just about locking down the entire country to help reduce the spread of the pandemic. It\u2019s also about how the pandemic will continue to affect global economies.<\/p>\n

With that in mind,\u00a0the emergency rate cuts<\/a>\u00a0are obviously adding a bitter taste to the disaster. However, this isn\u2019t to blame for Monday\u2019s crash either.<\/p>\n

We know that the\u00a0ECB is likely to follow suit<\/a>\u00a0and dive into deeper negative territories on Thursday. Theoretically, this will add pressure to a soaring euro. But will easing be beneficial at this stage, or will it increase the risk of recession?<\/p>\n

At the end of the day, if no one goes out to spend, GDPs will suffer even further than they did thanks to the downside of the trade war.<\/p>\n

G7 should really act quickly and bring central banks and governments together to stem the crash.<\/p>\n

Was the Oil Price War the Final Flourish?<\/strong><\/h2>\n

Investors currently seem to be shrugging off any news that is unrelated to the oil market. However, this is likely to change with Washington\u2019s response.<\/p>\n

Saudi Arabia\u2019s decision to go into an oil price war with Russia was one that affects all governments and economies and dents the global outlook.<\/p>\n

However, the triggering of the \u201ccircuit breakers\u201d spells something bigger than the historic ceasing in equities trading.<\/p>\n

By <\/strong>Orbex<\/strong><\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Orbex The bloodbath has begun. The Monday morning trading session was one for the history books. The S&P\u2019s drop flipped the market switches following a 7% plunge. Despite all eyes turning to the oil price war which we saw escalating over the weekend, there is way more to the capital flight than just that. […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-166194","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/166194","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=166194"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/166194\/revisions"}],"predecessor-version":[{"id":166199,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/166194\/revisions\/166199"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=166194"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=166194"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=166194"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}