Forex Today: Mood improves, Wall Street soars
|Here is what you need to know on Wednesday, March 25th:
- It was all about risk appetite. Massive stimulus from the Fed announced on Monday led to sharp gains in global equities. The DJIA added 11.37% while the S&P closed 9.38% higher. Demand for the greenback eased, with European currencies able to recover some ground, although easing ahead of the close. No significant change in long-term bearish bias for EUR and GBP.
- The coronavirus outbreak continues to dominate the headlines. The number of cases and the death toll keep rising. Italy reported fewer new cases, although the death toll was up again. The number of cases in the US jumped to 51.542. Nevertheless, US President Trump is calling to resume activity in the country, through twitter.
- After the UK announced a lockdown on Monday, this Tuesday was the turn of India. Despite the number of cases is small when compared to European countries, the country will be totally locked down for the next three weeks.
- The USD/JPY pair reached 111.70, surpassing its recent highs by a few pips, holding on to gains despite the broad dollar’s weakness, amid the better market’s mood.
- The AUD/USD recovered the 0.5900 threshold, underpinned by equities and gold. The Canadian dollar traded range-bound against the greenback, with the upside limited by weaker oil.
- Crude oil prices remained depressed near their recent multi-year lows ahead of stockpiles data. Tensions between Saudi Arabia and the US alongside plummeting demand weighed on the barrel’s price.
- Gold prices soared alongside equities, as, with the greenback out of the picture, the bright metal found demand. Spot gold reached $ 1.631.00 a troy ounce and settled not far below.
- Crypto Today: Bitcoin bulls raining in on $7000 return
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