Forex Today: EUR, JPY in the lead after Senate's stamp, ahead of horrible US jobless claims, BOE


Here is what you need to know on Thursday, March 26:

The US Senate finally passed the $2 trillion stimulus bill to mitigate the impact of coronavirus, and the House will soon take it. However, the market's enthusiasm has faded away. The move is partly a "buy the rumor, sell the fact" reaction but also the details of the package, which include a significant chunk of loans rather than grants.

The euro and yen are – whose economies have current account surpluses  – are gaining ground against the greenback while the dollar is beating the pound and commodity currencies. The present action in money is a break from the "dollar vs. everything" trade that has been seen earlier as there seems to be no distress.

Coronavirus has taken the lives of over 21,000 and has infected around 470,000. Spain suffered its grimmest day with 738 deaths, while the signs of "flattening the curve" are seen in Italy, where the number of new infections has stabilized. US cases near 70,000, yet New York City is somewhat optimistic. The Japanese government is considering adding restrictions amid an increase in cases. 

The focus today is US weekly Unemployment Claims, which may soar to 1.5 million and perhaps higher. Lockdowns have triggered massive layoffs. Some estimate the figure could be north of three million. 

See: Jobless Claims Preview: Recessionary timelines

The US also releases final Gross Domestic Product figures for the fourth quarter of 2019 – pre-crisis levels. See preview. Economists foresee a deep recession due to Covid-19. Jerome Powell, Chairman of the Federal Reserve, is scheduled to give an interview ahead of the data. The Fed stunned markets on Monday by announcing an open-ended Quantitative Easing (QE) program. 

GBP/USD trading has been extremely volatile, and the Bank of England's third rate decision in as many weeks may trigger additional ups and downs. The BOE may introduce more QE or loans but is unlikely to cut its rates. 

See BOE Preview: Does Bailey have a big bazooka? Only open-ended QE can stun sterling

The European Central Bank is considering dusting off its old Outright Monetary Transactions (OMT) program that allows it to buy unlimited government bonds from specific countries, providing another boost to their economies.

On the other hand, Germany and the Netherlands are reportedly opposed to issuing common European bonds, dubbed "corona-bonds." EU leaders will hold a videoconference later in the day. The news follows a letter by nine countries, including France, Italy, and Spain, demanding to share the debt burden.

Gold is consolidating around $1,600, looking for a new direction. Oil is on the back foot, with WTI hovering around $24.

Cryptocurrencies have been edging lower, with Bitcoin trading around $6,600.

More Coronavirus: How Trump's shortcuts could lengthen and exacerbate stocks' suffering

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

Gold fades upside momentum towards $1,850 amid mixed catalysts

Gold prices ease from $1,842.36 as risk-on dwindles. The yellow metal rose to the nine-day high the previous day as the US dollar weakness, coupled with the market optimism, favored the bulls.

Gold news

AUD/USD ignores weak Aussie retail sales data, trades near 0.7440

AUD/USD trades near 0.7430, representing a 0.84% weekly gain. The bearish US dollar sentiment helps the AUD/USD pair shrug off the weaker-than-expected Aussie macro data released soon before press time and consolidate near 0.7440

AUD/USD News

USD/JPY: Bearish bias across Monthly, Weekly charts

USD/JPY trapped between daily support and resistance against bearish backdrop. Yen is under pressure across the longer-term time frames and is trending within a weekly channel to the downside.

USD/JPY News

WTI bulls ignore downbeat comments from Russia’s Novak, eye $46.00

WTI wavers near the upper end of one-week-old bullish flag. The black gold remains positive on a daily basis while taking rounds to the November month’s high, also the highest since March. Risk-on mood, US dollar weakness favor the commodities, US employment data awaited.

Oil News

Extra week of Black Friday!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info

Forex MAJORS

Cryptocurrencies

Signatures