Forex Today: US Senate clears $2trln relief bill, coronavirus spread intensifies; US jobless claims eyed


The risk-off sentiment remained the underlying theme in Asia this Thursday, as the market mood was fragile amid intensifying coronavirus spread on both sides of the Atlantic. Therefore, the US economic aid package passed by the Senate failed to lift the sentiment, with the Asian stocks a mixed bag while the US equity futures dropped along with the Treasury yields. Gold prices failed to take advantage and meandered in lows near $1620.

The US dollar remained under pressure across the board amid easing funding stress on the US fiscal and monetary measures. USD/JPY slipped below 111.00 amid widespread risk aversion while the Aussie attempted a recovery above 0.5900 following a sharp drop in early Asia. The Kiwi also recovered some ground above 0.58 but wasn’t out of the woods yet. Meanwhile, USD/CAD bounced to 1.4270 amid oil-price sell-off.

EUR/USD benefited the most from broad US dollar weakness amid some positive news coming out Italy. The cable, on the other hand, traded weaker below 1.1900 amid a solid surge in the number of new infections in the UK.

Main topics in Asia

US Pres. Trump: Large sections of US can reopen faster than others

US health official Fauci: Coronavirus could become seasonal

UK coronavirus confirmed cases jumps to 9,529 from 8,077

Rep. US Senator Graham sees likely break in logjam over coronavirus bill; Vote on passage likely Wednesday night

Risk-off as rumour has that US Senate vote not agreed to yet, COVID-19 weighs heavy

US treasury bonds offer negative yields

US Treasury Sec. Mnuchin: It’s a great deal both for Trump and the economy

Coronavirus update: S. Korea confirms 104 new cases, Japan total count tops 2000

New Zealand's Finance Minister: Jobless rate set to become significantly worse

US coronavirus cases jump by 12,000 in one day, death toll tops 1000

US Senate rejects GOP effort to overhaul jobless benefits in stimulus bill

US Senate has votes to pass $2-trillion economic rescue package bill to tackle coronavirus crisis

Japan’s Nishimura: Not thinking of declaring a state of emergency now

RBA buys A$3 bln in government bonds on Thursday, AUD/USD stays firmer above 0.59

Key focus ahead        

On the data front, the immediate focus remains on the February UK Retail Sales data, due at 0700 GMT, alongside the release of the German Gfk Consumer Confidence Survey for April. Later in the European session, the Eurozone credit supply data and the European Central Bank (ECB) Economic Bulletin will be eyed for fresh trading incentives.

The Bank of England (BOE) monetary policy decision will hog the limelight, especially after the two emergency rate cuts announced already this month. The announcement will be out at 1200 GMT.

Next of note remains the US Jobless Claims data, at 1230 GMT, amidst the coronavirus outbreak-led economic disruption. Also, the US Q4 GDP and Trade Balance data will be eyed among other reports.

Apart from the data, the coronavirus updates will continue to play a pivotal role in influencing the broad market sentiment, as most governments are struggling hard to contain the virus spread.

EUR/USD claws back nearly 35% of recent sell-off, focus on US jobless claims

EUR/USD crossed above 1.09 on the back of broad-based US dollar weakness. Markets offered greenback, possibly in hopes of the US fiscal stimulus. Markets brace for the US jobless claims with talk it could exceed 1 million.

GBP/USD stays below 1.1900 with eyes on BOE, coronavirus outbreak

With the pandemic fears probing buyers, GBP/USD stays under pressure below 1.1900 while heading into the London open. Not only coronavirus (COVID-19) fears, but the cautious sentiment ahead of BOE also tames the quote’s moves.

US Initial Jobless Claims Preview: Recessionary timelines

Claims expected to be the highest in the series 53-year history. Estimates for initial jobless benefits range from 1 million to 4 million. Previous highs were 695,000 in October 1982 and 665,000 in March 2009.

China, US to set aside differences in G20 coronavirus summit - SCMP

The leaders of the G20 nations hold talks via video conference later today to discuss on the coronavirus pandemic.

 

 

GMT
Event
Vol.
Actual
Consensus
Previous
Saturday, Mar 21
24h
 
 
Tuesday, Mar 24
24h
 
 
Thursday, Mar 26
07:00
 
7.1
9.8
07:00
 
1.1%
1.2%
07:00
 
-0.2%
1.6%
07:00
 
0.2%
0.9%
07:00
 
0.8%
0.8%
09:00
 
5.2%
5.2%
09:00
 
 
5.2%
09:00
 
3.8%
3.7%
09:00
 
 
n/a
 
 
12:00
 
 
0.1%
12:00
 
 
£645B
12:00
 
 
12:00
 
 
12:00
 
0
0
12:00
 
9
9
12:00
 
 
0
12:30
 
1,000K
281K
12:30
 
 
232.25K
12:30
 
1.708M
1.701M
12:30
 
1.3%
1.3%
12:30
 
2.1%
2.1%
12:30
 
0.0%
-0.4%
12:30
 
 
$-65.9B Revised from $-65.5B
12:30
 
1.3%
1.3%

 

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

Editors’ Picks

EUR/USD extends slump after NFP shows massive job loss

EUR/USD is trading below 1.08, down on the day. The Non-Farm Payrolls report has shown a loss of 701,000 jobs, worse than expected. The ISM Non-Manufacturing PMI surprised to the upside with 52.5 points. 

EUR/USD News

GBP/USD drops below 1.23 amid sour mood, after UK data

GBP/USD has dropped below 1.23 as the market mood sours. Final UK Services PMI dropped to 34.5 points, worse than expected.  

GBP/USD News

NFP Quick Analysis: 701K jobs lost only be tip of the iceberg, why King Dollar is ready for coronation

The US lost 701,000 jobs in March, the worst in 11 years. The Non-Farm Payrolls figures are lagging the fast-moving events. Wage growth is also skewed and should be ignored. The safe-haven dollar has room to rise. 

Read more

WTI trades in three-week’s highs near $26.50 a barrel

WTI is jumping from multi-year lows following the US President Trump’s tweet of yesterday (Thursday) suggesting a Saudi-Russian deal was on the pipeline.

Oil News

Gold remains confined in a range, moves little post-NFP

Gold extended its sideways consolidative price action around the $1615 region and had a rather muted reaction to the US monthly employment details

Gold News

Forex MAJORS

Cryptocurrencies

Signatures