Forex Today: Crazy crude oil price’s behaviour shocked investors
|What you need to know on Tuesday, April 21st:
- Crude oil prices were in the eye of the storm, as the commodity plunged to multi-year lows on the back of the coronavirus pandemic. WTI May contract, which expires this Tuesday fell to record lows of $-37.60 a barrel, although the June contract stayed at around $ 22.00 a barrel. The commodity weighed on global indexes leading to most of them closing in the red.
- The European Commission has announced that, within its Coronavirus Response Investment Initiative, Hungary which has 172 coronavirus fatalities, will get €5.6bn double the amount Italy will receive. With the death toll above 23.6K, Italy will get €2.3bn. The news had spurred rage, and for sure, won’t help the shared currency strengthen.
- In the UK, the coronavirus death toll was up by 449 in the last 24 hours, lifting hopes the kingdom may be at its peak of infections. Nevertheless, the GBP/USD pair showed no reaction to the news.
- Wall Street plunged in the last minutes of trading, weighed by crude oil prices and disappointing earnings reports. The slump in equities gave a late push to the dollar, which managed to advance modestly against most major rivals.
- Spot gold neared $1,700 a troy ounce as risk sentiment remained sour.
- The People Bank of China cut interest rates at the beginning of the day, trimming its Loan Prime Rate by 20 bps, to 3.85%. The decision underpin the Aussie ahead of RBA Meeting´s Minutes.
- The total number of confirmed coronavirus infections in the UK rose to 124,473 from 120,067 as of Monday morning, the health ministry reported in its daily update. The death toll increased by 449 to 16,509 as 1600 GMT on April 19.
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