Again, another mostly quiet session ahead of the end of the month and end of the quarter.
Without big headlines that affect price action beyond the data on the evolution of the pandemic, especially in the United States, where the curve is still worrying on the upside.
Everything is about the feeling of risk, which causes choppy movements in the stock markets that today have started with very slight gains.
The confrontation between the United States and China has gone into the background. The news of the reaction of the Asian country imposing the need for visas on United States citizens has gone unnoticed by investors.
So far, everything indicates that the market will get used to coexisting with the pandemic and the increase in infections. While the number of deaths and hospital capacity remains controlled, the stock markets will continue to be tilted slightly upward.
There is still time to evaluate the effect of the closure of economic activity and the impact that this measure will have on the earnings of companies and the spending capacity of consumers.
Facebook is being pressured
Although some consequences of this atypical situation in economic activity and social behavior are already being noticed in stocks.
Facebook fell a little more than 8% at the beginning of the session after one of its main clients announced that they are going to withdraw their advertising campaign on this social network due to their inability to stop the increase in hate messages, and disinformation.
Technically, this stock has stopped its fall in the support levels located at $216. This level may act as a pivot, which could make its way to $201, but if these decisions to withdraw ads by customers are not generalized, the stock could quickly recover the lost territory in the next sessions.
Where the movement has been most noticeable is in the currency market. The US Dollar has weakened amid a more risk-inclined market, especially against the Euro.
EUR/USD has undergone a strong bullish momentum, which has brought it towards a first reference level at 1.1280, although the pair still needs to break above the 1.1330-1-1350 area for the bullish trend to resume.
This movement is due in part to the weakness of the Dollar, which is accentuated by flows of portfolio adjustment at the end of the month and quarter, but also by its correlation with EUR/GBP, which has broken up to its next target at 0.9180.
The start of the talks on the United Kingdom's negotiated exit from the European Union, as expected, have not produced any significant progress, on the contrary, the statement of the participants in this round of talks has only been a forward kick that advances more considerable difficulties in reaching an agreement.
If the indecision continues, and nothing indicates the opposite at the moment, the Sterling Pound will continue to suffer downward pressure, and EUR/GBP will head towards the next Fibonacci target at 0.9320.