Here is what you need to know on Wednesday, April 22:
The market remains damp and the US dollar is consolidating its gains after a risk-off day on Tuesday which saw markets tumbling as crashing crude prices remain in the spotlight.
WTI remains on the back foot around $10 and Brent Crude has also succumbed to pressure and trades below $20, to the lowest since 1999. An unscheduled OPEC+ teleconference has failed to yield any relief. Technical quirks around the expiration of contracts and Exchange Trade Fund holding have added fuel to the fire of volatility in WTI. The lack of demand and filling storage in the US weighs on the black gold. US oil inventories' figures are due out later on.
American lawmakers have agreed on another stimulus bill worth $484 billion, mostly focused on small businesses. Several governors say more money is needed for states. US coronavirus cases have topped 825,000 and deaths the top 45,000. US Existing Home Sales showed a significant drop in March.
Europe: Italy, Germany, and Austria are moving toward lifting some of the restrictions as COVID-19 figures continue to gradually improve. Spanish and French statistics have also shown progress. Governments are struggling to strike a balance between preventing a second wave of infections and hurting the economies.
The European Central Bank is set to discuss loosening some of its bond-buying rules, potentially venturing into junk bonds. The ECB continues deploying its QE scheme to keep Italian yields low. EUR/USD has been circling around 1.0850. Tension is mounting towards the EU Summit on Thursday. as countries clash over coronabonds.
UK: The government came under criticism of its handling of the crisis as parliament resumed its discussion using technology. Health Secretary Matt Hancock said that they are "throwing everything" at potential vaccines. Andrew Bailey, Governor of the Bank of England, warned that lifting the lockdown too early and reapplying it would damage the economy even more.
GBP/USD was the loser on Tuesday, falling below 1.23. UK inflation figures for March are set to show a deceleration in the headline Consumer Price Index. Job figures came out marginally above expectations.
AUD/USD jumped in response to a leap of 8.2% in retail sales in March, fueled by stockpiling. NZD/USD also edged higher before both currencies settled lower also as Australian skilled job vacancies plunged by 5.3% in March. Canada publishes inflation figures for March, yet the focus for the loonie remains on oil.
Cryptocurrencies have been trading in narrow ranges, with Bitcoin below $7,000.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
USD/JPY jumps above 156.00 on BoJ's steady policy
USD/JPY has come under intense buying pressure, surging past 156.00 after the Bank of Japan kept the key rate unchanged but tweaked its policy statement. The BoJ maintained its fiscal year 2024 and 2025 core inflation forecasts, disappointing the Japanese Yen buyers.
AUD/USD consolidates gains above 0.6500 after Australian PPI data
AUD/USD is consolidating gains above 0.6500 in Asian trading on Friday. The pair capitalizes on an annual increase in Australian PPI data. Meanwhile, a softer US Dollar and improving market mood also underpin the Aussie ahead of the US PCE inflation data.
Gold price flatlines as traders look to US PCE Price Index for some meaningful impetus
Gold price lacks any firm intraday direction and is influenced by a combination of diverging forces. The weaker US GDP print and a rise in US inflation benefit the metal amid subdued USD demand. Hawkish Fed expectations cap the upside as traders await the release of the US PCE Price Index.
Stripe looks to bring back crypto payments as stablecoin market cap hits all-time high
Stripe announced on Thursday that it would add support for USDC stablecoin, as the stablecoin market exploded in March, according to reports by Cryptocompare.
US economy: Slower growth with stronger inflation
The US Dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.