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


Markets do not know whether they are coming or going – the situation is fluid. We are in unchartered waters and COVID-19 is showing little proven sign that it's about to go away and not get a lot worse. Meanwhile, the US cannot get any stimulus to US citizens nor companies until the US Senate votes on a mammoth $2 trillion coronavirus rescue package. Rumour has it that they cannot even agree on a time to vote and this appears to be weighing on markets with the Nikkei now down -2% at the time of writing and US Eminis bleeding out in the red following a positive start in the open. 

Investors should still be prepared for bad news as the situation remains extremely fluid. Volatility is almost at the levels of 2008 according to the VIX, there is no light a the end of the tunnel yet without a vaccine, cure and the virus rapidly spreading. However, all eyes are back on China. With the Hubei lockdown lifted, after the number of new cases has been reported to slow, the world will be watching resumption of movement in and out of Wuhan, scheduled for April 8. It will serve as a template for markets the world over that have been affected by restraints on business operations.

 

 

 

 

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

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD struggles around 1.21 amid sour market mood

EUR/USD has extended its falls and struggles around 1.21 as the risk-off mood and elevated US bond yields favor the dollar. President Biden's stimulus bill ran into a snag. The Fed's preferred inflation measure and end-of-month flows are eyed.

EUR/USD News

Gold melts below $1,750, lowest in 8 months amid high Treasury yields

Gold (XAU/USD) has been extending its downfall as elevated bond yields make the precious metal – which provides no returns – less attractive.

Gold news

S&P 500 Day Ahead Outlook: Inflation fears see bears back bashing

An ugly day for stock markets on Thursday as the dirty word inflation reared its head again. Just when you thought Powell had killed off the thought, it came back stronger in the sequel!

Read more

Bitcoin ready for bullish continuation as crypto bull cycle pauses

Bitcoin retest support at $45,000 after failing to break the resistance at $52,000. A break above the range between $48,000 and $49,500 will bring back a bullish impulse.

Read more

US Dollar Index remains firm around 90.60 post-data

The US Dollar Index (DXY), which gauges the buck vs. a basket of its main rivals, keeps the bid tone unchanged around 90.60 on Friday.

US Dollar Index News

Forex MAJORS

Cryptocurrencies

Signatures