Wednesday was a day of positive and negative headlines regarding the COVID-19 as the World Health Organisation said the number of newly reported cases globally hit a daily record. This comes despite governments around the world attempting to ease lockdown restrictions. The positive side showed that in Europe and the UK infection rates were starting to slowdown drastically.

The choppy, volatile week continued on Wednesday as we yet again saw global stock markets reverse the previous days move. The Dow Jones and S&P500 both ended higher while stocks in Asia slipped slightly lower. The indecision looks set to continue into Thursday's session with both US and European futures markets currently pointing to weaker opens.

Oil prices have edged higher yet again after Wednesday's oil inventory data fell yet again easing the oversupply issue and showing more space for storage as demand picks up due to the easing of lockdown. Rolling cash WTI oil prices are now sitting at a stable $34.30 per barrel. While the new July futures contract trades at a similar level.

This afternoon we will get the key initial jobless claims reading as markets are set for another dire reading. Expectations are for another 2.4 million to have claimed job seekers allowance over the last week. At yesterday's FOMC meeting minutes we saw that the Fed had been concerned about the unemployment picture. Jerome Powell has previously stated that unemployment in the US could hit 25%.

The minutes from April's rate setting meeting also showed there is deep concern not just about the current state of the economy, but also what lies ahead. Investors continue to ignore the economic warnings, buying into stock markets. Even this week while we have seen a mixture of volatile movements the upside moves have been stronger than the downside. The Fed also warned that the amount of bankruptcies for small and medium sized business could well put enormous strain on the banking sector.

This morning we will see some key data out of Europe and the UK as the flash PMI readings are expected to show all sectors of the economy are still struggling. However we do expect a stark improvement from Aprils data as Composite, manufacturing and services PMI's are expected to post higher readings.

Any number above 50 shows an increase in output in these sectors, and while we will not see an improvement that shows the sectors increasing, we could well see them improving.

The information provided here has been produced by third parties and does not reflect the opinion of AxiTrader. AxiTrader has reproduced the information without alteration or verification and does not represent that this material is accurate, current, or complete and it should not be relied upon as such. The Information is not to be construed as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product, or instrument; or to participate in any particular trading strategy. Readers should seek their own advice. Reproduction or redistribution of this information is not permitted.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD loses 1.1800 amid escalaing US-Sino tensions

EUR/USD dips sub-18 after the US reported an increase of 1.763 million jobs in July, better than estimated but pointing to a deceleration. Escalating Sino-American tensions are boosting the dollar and fiscal talks are eyed. 


GBP/USD resumes decline, weighed by UK concerns, US-China conflict

GBP/USD trades at fresh weekly lows below 1.3050 as the dollar got a sudden boost from mounting tensions between the world's two largest economies. UK Chancellor Rishi Sunak said the furlough scheme that is underpinning the economy cannot last forever.


XAU/USD drops $50 from record highs to the $2020 area

Gold prices are falling sharply on Friday, trading below $2040/oz at the moment. Earlier on Friday, the yellow metal reached at $2075, a new record high.

Gold News

Bitcoin may extend the recovery once Gold resumes the rally

Gold retreated from the recent highs, but the sentiments are still bullish. Cryptocurrencies resumed the upside, some altcoins are demonstrating strong gains. ETH/BTC stopped the downside correction and settled at $0.03300.

Read more

WTI extends slide toward $41, on track to post weekly gains

Crude oil prices continued to fall on Friday and the barrel of West Texas Intermediate (WTI) touched a daily low of $41.05 before recovering modestly.

Oil News

Forex Majors