Forex Today: Oil crashes, dollar mixed, as countries seek exit from coronavirus confinements
|Here is what you need to know on Monday, April 20:
Oil prices have crashed with WTI dipping below $15 at one point. The black gold continues suffering from lack of demand as economies remain in an induced coma amid the coronavirus crisis. The planned OPEC+ cuts of around 10 million barrels per day will come into effect only in May, could be insufficient, and storage is filling. The Canadian dollar, Norwegian krone, and Russian ruble are all under pressure.
See Oil has yet to find the bottom of the barrel, gold has more room to shine – Explained
Broader markets are mixed and the dollar is stable as a new week kicks off. Gold continues trading below $1,700. Global COVID-19 cases are over 2.4 million and deaths reached 165,000 according to the Johns Hopkins tracker. The US and China exchanged barbs over the weekend, causing worries about a lack of global coordination.
UK: GBP/USD remains pressured under 1.25. The government has rejected several criticisms over its handling of the COVID-19 crisis. The Sunday Times suggested the Prime Minister was not engaged in dealing with the issue and the Financial Times published a story about mismanagement of procuring ventilators.
Chancellor of the Exchequer Rishi Sunak will present new measures today and Brexit talks continue via video throughout the week. The Financial Times reported that the number of business failures rose by 70% yearly in March. COVID-19 deaths have reached 16,000.
Europe: EUR/USD is stable below 1.09. European leaders are gearing up toward a videoconference of leaders due on Thursday with coronabonds remaining a key sticking point. The EU's Paolo Gentilloni has said that aid worth €1.5 trillion may be needed.
The number of cases and deaths from the disease have been on the decline in all major countries. Germany is easing some restrictions this week while France is set to unveil a plan later this week. The Italian government has rejected calls for a faster relaxation of restrictions while Spain is allowing children to leave their homes from next week.
US: Encouraging figures are also seen in New York, the hardest-hit area. President Donald Trump and governors continue clashing over federal support and reopening the economy. Republicans and Democrats are working on new aid to struggling businesses and individuals following the $2.2 trillion package approved earlier.
The New Zealand dollar stands out with gains as the county plans to ease the strict lockdowns it imposed. Consumer Price Index surprised by rising 0.6% in the fourth quarter.
Cryptocurrencies are edging higher, with Bitcoin trading close to $7,200.
More: Coronavirus and the US Economy: Not how deep the recession but how long
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