Global stocks rose today as investors reflected on Super Tuesday and on the rate cut by the Federal Reserve yesterday. Joe Biden won most states in the nominations that happened yesterday bringing hope that he will win the democratic nomination. He won in important states like Massachusetts and Texas. Bernie Sanders, on the other hand, won the important state of California that has 415 delegates. Investors hope that Donald Trump will face-off with a more moderate Democratic candidate like Biden. In addition, traders also focused on the Fed, which slashed rates by 50 basis points yesterday. They now hope that other central banks like the ECB and BOE will follow. In Europe, the DAX, Stoxx, and CAC rose by more than 1% while in the US, futures tied to the Dow and Nasdaq rose by more than 2%.

The British pound declined today as the market reflected on PMI data from Markit Economics. The data showed that service providers in the country continued to increase their business activity in February. The PMI data came in at 53.2, which was lower than January’s PMI of 53.9. According to Markit, the decline was mostly because of coronavirus and a loss of momentum for incoming new business.  The data also showed that the total volume of new work increased for the third straight month. Meanwhile, the seasonally-adjusted composite PMI declined from 53.3 to 53.0. The reason for the smaller decline was that manufacturing output continued to rise, reaching a ten-month high in February.

The Swiss franc rose slightly against the USD in reaction to the rate cut by the Fed. The market also reacted to the CPI data released by the Federal Statistical Office. The data showed that consumer prices increased by 0.1% in February compared with the previous month. The increase was attributed to an increase in air transport, international package holidays, and clothing and footwear. These were offset by the decrease of heating oil and hotel accommodation. The number came a day after SECO released the final GDP data of the fourth quarter. In the quarter, the economy expanded by 0.3%, following a 0.4% increase in the third quarter. This growth was mostly because of domestic spending. In general, the economy expanded by just 0.9% in 2019.

USD/CHF

The USD/CHF pair declined to an intraday low of 0.9540. The pair has been falling since February 20, when it was trading at 0.9848. The price is slightly below the 14-day and 28-day exponential moving averages. It is also below the Ichimoku cloud on the hourly chart. The RSI has remained at the neutral level of 40. The pair may continue falling if coronavirus risks rise.

EUR/USD

The EUR/USD pair declined to an intraday low of 1.1140, which is the lowest level since yesterday. The price is below yesterday’s high of 1.1213. The price is forming a head and shoulder pattern on the hourly chart. The RSI too has been falling. The pair may continue moving lower to test the neckline of the head and shoulder pattern, which is at 1.1093.

AUD/USD

The AUD/USD pair rose to an intraday high of 0.6623, which is along the 61.8% Fibonacci Retracement level on the hourly chart. The price is above the 14-day and 28-day exponential moving averages. The on-balance volume has continued to rise. The signal line of the MACD is above the centreline. The pair could continue rising during the American session.