The market mood is cautiously optimistic on Thursday after a risk-off Monday. Stock futures are marginally higher while the US dollar is up against the yen and euro, down against the pound and commodity currencies.
Coronavirus has infected over 930,000 people and taken the lives of 47,000 worldwide. US cases have topped 200,000. Florida has joined the long list of states imposing a lockdown, adding to pressure on the economy.
Weekly jobless claims are in the spotlight today. After surging to 3.283 million in the week ending on March 14, an increase to 3.5 million is on the cards. However, Goldman Sachs foresees five million claims amid the worsening crisis.
See Initial Jobless Claims Preview: The tidal wave rolls on
The ADP Non-Farm Payrolls and the ISM Manufacturing Purchasing Managers’ Index released on Wednesday beat expectations but seemed to miss the latest economic developments in a fast-moving crisis. Authorities in the US have ordered 100,000 body bags in a grim sign of the potential severity of the crisis.
Eurozone: Italy has seen its figures plateauing, but daily deaths in Spain and France have reached new highs. Italy and Germany have extended their movement restrictions to after Easter, and other countries may follow. Eurozone countries continue squabbling over mutualizing the debt, while the European Commission is trying to come up with alternatives to “corona-bonds.”
Chinese coronavirus figures are in growing doubt. Bloomberg reported that US intelligence sources say that the world’s largest economy is concealing the real numbers of mortalities. Beijing has ordered a lockdown in a small county in the Henan province, to prevent a second wave of infections.
UK Prime Minister Boris Johnson is under pressure as a welfare claims surge and a severe dearth of COVID-19 testing, especially among health workers. GBP/USD remains highly volatile in comparison to its peers.
Oil is attempting a recovery despite dwindling demand due to the disease and a substantial increase in oil inventories. President Donald Trump is scheduled to meet bosses of oil companies later in the day. China has announced it will start buying oil for its reserves, another positive sign.
Cryptocurrencies have advanced from previous ranges, with Bitcoin trading around $6,600.
More: Learning to love volatility, how to choose currency pairs and more – interview with Nenad Kerkez
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
AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The 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.