Here is what you need to know on Monday, April 27:
There is a risk-in tone in markets amid further easing from the Bank of Japan, falling coronavirus cases, especially in Europe, and as investors have digested last week's devastating economic figures. The US dollar is on the back foot across the board, with commodity currencies the biggest winners. Gold is stable at around $1,720.
The BOJ has removed limits to buying government bonds and will expand the type of assets it accepts as collateral. Governor Haruhiko Kuroda has stated that the economy remains in a severe situation. USD/JPY is battling 107.
COVID-19 cases and deaths dropped significantly in various European countries. Italy announced a gradual plan to ease restrictions from May 4, and Spain allowed children to leave homes as both countries reported fewer than 300 losses of life on Sunday. French President Emmanuel Marcon will president disease for lifting the lockdown on Tuesday. Germany also reported only around 1,000 cases on Sunday. EUR/USD has been edging up, trading closer to 1.0850.
UK: Prime Minister Boris Johnson is back in Downing Street and will soon have to decide on the next steps. The government is split on shuttering the economy as Tory donors reportedly want to reopen the economy. Similar to the continent, Britain reported fewer coronavirus cases yet some fear it is due to underreporting during the weekend. GBP/USD has recaptured the 1.24 level and Brexit headlines may impact sterling. Chief EU Negotiator Michel Barnier said that no progress was made.
US President Donald Trump stopped delivering daily briefings after suggesting disinfectant injections could be used against coronavirus and coming under scrutiny. US cases topped 900,000 and deaths are above 52,000. However, the pace is slowing in many states, including New York, and some are moving toward easing the shelter-in-place orders, also adding to optimism. The Federal Reserve's decision is awaited.
Oil prices have seemed to not receive the optimistic memo and remain on the back foot. WTI is on the back foot, trading below $16 (June contract) as fears that storage will run out put pressure on petrol prices.
North Korea: Speculation about the health of leader Kim Jong-un remains rife. It is unclear who could take power in the nuclear nation.
Official global coronavirus cases near three million and cases top 200,000. Excess deaths in various countries suggest mortalities maybe 60% higher, according to the Financial Times, which joins a calculation by the New York Times.
Cryptocurrencies have been edging higher, with Bitcoin trading above $7,700.
More Reopening: Timing is tough and two assets have more room to rise regardless
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