Forex Today: The month ended, the crisis is here to stay

FXStreet Team FXStreet

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

Equities traded mixed, with European indexes closing with gains but Wall Street in the red, amid persistent concerns related to the coronavirus pandemic. US equities edged lower for a second consecutive month. Investors are being extremely cautious as a volatile month came to an end.
The COVID-19 outbreak gives no respite to major economies as the number of cases in the US is above 177,000. It’s growing also in Europe, with Spain and Italy reporting a total of 200,000 cases. The death toll remains high in Italy, while it grows in the US. The economic stalemate worldwide continues.
Most major pairs remained within familiar levels, as speculative interest is running out of options. The Canadian dollar out-stands at the end of the day, appreciating against the greenback despite weakening oil prices.
Gold suffered a major set back at the end of the day, falling despite a weaker dollar and a general risk-off mood.
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FXStreet

EUR/USD flirts with weekly lows near 1.1770

EUR/USD now comes under further selling pressure, breaking below the 1.1800 support to challenge the area of weekly throughs near 1.1770 on Thursday. The pair’s decline comes in response to marked gains in the US Dollar amid steady geopolitical tensions. Ealier in the day, the ECB’s Lagarde delivered cautious remarks, although the currency remained apathetic.

GBP/USD threatens the 200-day SMA near 1.3440

GBP/USD rapidly leaves behind Wednesday’s strong advance, coming under heavy pressure and retesting the 1.3440 zone, where the critical 200-day SMA is located. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold trims gains, slips back to around $5,170

Gold is now facing some downside pressure, hovering around the $5,170 region on Thursday. The yellow metal surrenders part of its earlier gains on the back of the resurgence of the buying interest in the Greenback. In the meantime, geopolitical tensions in the Middle East continue to limit the downside potential for now.