Forex Today: New quarter, same market gloom as coronavirus spreads, critical US data eyed

Here is what you need to know on Wednesday, April 1:

Investors are not tricked on April Fool’s Day and are in a gloomy mood. Asian stocks and S&P futures are down at the beginning of the second quarter after the first quarter was the worst since 2008.

The US dollar is gaining some ground across the board after a volatile close to the quarter. President Donald Trump has issued a grim warning, talking a painful two weeks, while his advisors discussed various estimates of mortalities. Nearly 190,000 people have been infected in the US, with the death toll topping 4,000. The White House is considering cutting tariffs as another easing step.

EUR/USD is under pressure as the death tolls in Spain and France continue rising, while infections in Italy seem to level off. Final manufacturing Purchasing Managers’ Indexes for March are projected to confirm only moderate contraction – yet this is due to a quirk in the methodology that counts delays as a positive factor. Eurozone countries remain at odds over corona-bonds. France, Italy, and Spain want a debt sharing scheme, while Germany and the Netherlands oppose it.

GBP/USD is trading below 1.24 after a volatile Tuesday, as the UK continues suffering rapid contagion. Final UK Manufacturing PMI is forecast to show a minor downgrade.

US data stand out later in the day. ADP’s private-sector jobs report is set to show a loss of around 150,000 jobs, in a precursor to the official Non-Farm Payrolls report.

See ADP Non-Farm Payrolls Preview: The job onslaught begins

Later on, economists expect a considerable fall in March. The Employment Component serves as another hint towards the NFP.

See ISM Manufacturing PMI Preview: Markets return first, factories second?

In China, the Caixin Manufacturing PMI came out at 50.1, indicating minimal growth and in line with the government’s figures. The statistics failed to cheer markets.

Oil prices are hovering around the lows, with WTI trading at the $20 handle. Saudi Arabia and Russia are considering a meeting to discuss petrol prices after launching a price war earlier this year. Trump spoke with Russian President Vladimir Putin earlier this week.

Cryptocurrencies have been on the back foot, with Bitcoin trading around $6,300.

More Oil prices are poor predictors of a recession

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

FXStreet Trading Signals now available!

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

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD tests daily lows above 1.1300 amid broad dollar recovery

EUR/USD trades close to 1.1300 amid a broad-based US dollar recovery. The shared currency remains at the mercy of the broader market sentiment as the data docket is light on Monday. COVID-19 stats in focus. 


GBP/USD drops towards 1.2600 as US dollar rebounds

GBP/USD extends the drop towards 1.2600 amid the broad US dollar comeback. UK Michael Gove pushes to prepare for Brexit, as differences prevail in post-transition talks. BoE’s Bailey to speak later today.


Gold sits near daily tops, just below $1810 level

A combination of supporting factors assisted gold to regain positive traction on Monday. Sustained USD selling remained supportive amid concerns about rising COVID-19 cases. The prevalent risk-on mood might turn out to be the only factor capping any strong gains.

Gold News

Dominance war to push Ethereum to $270

The Altcoin segment is still in full swing while the crypto board leaders, Bitcoin and Ethereum, remain stuck at the same levels as in recent weeks. The dispute for market share, or dominance in technical terms, remains at a point of maximum tension. 

Read more

WTI: 200-HMA probes bears above $40.00

WTI stays pressured beyond $40.00 despite multiple bounces off 200-HMA. MACD conditions suggest bears rolling up their sleeves for entry. Bulls will have multiple upside barriers beyond $41.00.

Oil News