Forex Today: Markets torn between vaccine and virus news, ahead of ECB, US jobless claims


Here is what you need to know on Thursday, April 22:

Markets are calm after a positive day, with yields and the dollar falling. Optimism about a developed-world vaccine-led recovery is countered by surges in covid cases in India and elsewhere. The ECB is set to leave its policy unchanged and US jobless claims are eyed as well. 

Mixed mood: Coronavirus cases are dropping in the US as the world's largest economy reached 40% of its population with at least one inoculation and optimism about Europe's recovery is also eyed. On the other hand, India hit a record of over 300,000 infections in one day and Japan's worsening situation also worries investors. S&P 500 futures are stable after Wednesday's bounce. 

The European Central Bank is set to leave its policy unchanged and take stock of the improving economic environment amid growing US demand and hopes for a significant rebound. Christine Lagarde, President of the ECB, will likely be asked about the bank's bond-buying scheme and if it intends to taper it down at any point. 

See European Central Bank Preview: Five reasons for  agarde to lift the euro

USD/CAD remains on low ground around 1.25 in the aftermath of the Bank of Canada's decision to taper its purchases of government debt. The hawkish move, on the backdrop of America's economic boom and rising housing prices, may precede a similar move by the Federal Reserve. 

The US dollar is off the highs as US 10-year yields extend their drop below 1.55%. Gold has failed in its attempt to move above $1,800 and remains correlated with returns on US debt. US unemployment claims are set to show a rise from last week's surprisingly low figure of 576,000. Existing Home Sales for March are also awaited. 

See US Initial Jobless Claims Preview: Optimism doesn't come naturally

Cryptocurrencies are mixed, with Bitcoin pressured under $55,000 and Ethereum changing hands near $2,500. XRP is edging higher. 

 

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD battling to retain the 0.9600 mark

EUR/USD battling to retain the 0.9600 mark

The EUR/USD pair trades a handful of pips above the 0.9600 level after reaching a new two-decade low of 0.9549. Fears of a global economic downturn spurred risk aversion, backing the American currency.

EUR/USD News

GBP/USD falls below 1.0700 following BoE statement

GBP/USD falls below 1.0700 following BoE statement

GBP/USD came under renewed bearish pressure and slumped below 1.0700 during the American trading hours. In a statement published on Monday, the Bank of England said that they welcome the government's commitment to sustainable economic growth, triggering another GBP selloff.

GBP/USD News

Gold could soon challenge the $1,600 level

Gold could soon challenge the $1,600 level

Demand for the dollar continued at the beginning of the week, resulting in XAUUSD plummeting to $1,626.67, its lowest since April 2020. Concerns about potential recessions undermined the dismal market’s mood, pushing the greenback higher despite its extreme overbought conditions.

Gold News

Bitcoin: Investors need to prepare for volatile breakout

Bitcoin: Investors need to prepare for volatile breakout

Bitcoin price has been devoid of volatility for the last week and has been in a tight consolidation without directional bias whatsoever. This range bound move has formed a triangle pattern which could break either way. 

Read more

Three stocks that will be in the news this week: Amazon, Nike, Micron Technology

Three stocks that will be in the news this week: Amazon, Nike, Micron Technology

The S&P 500 index lost 4.1% last week and left traders melancholy with another week to go in this dreadful September. The S&P 500 index is down 6.6% so far in the month that is already known for poor performance, and most seem to think the pain will continue. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures