The Epidemic of the COVID-19 Virus Is Still in the Spotlight. An Entry Ban Into the EU Will be Imposed

The US dollar has been growing against the basket of major currencies after statements by Donald Trump. The dollar index (#DX) closed in the green zone (+1.59%). The US President promised to provide emergency financial assistance to the population, as well as to delay tax payments and provide new credit incentives. Financial market participants are focused on the situation concerning the outbreak of coronavirus. For now, 173 thousand cases of infection have been detected worldwide. Seven thousand people have died. A third of all infections are in Europe. The WHO Regional Director for Europe, Hans Kluge, said that in order to stop or slow down the spread of the virus, all countries in the region without exception should take decisive actions. So, Chancellor, Angela Merkel, said that an "entry ban into the EU with a few exceptions" for "30 days" is supposed to be imposed.

UK-EU talks scheduled for Wednesday have been canceled. Due to the coronavirus, formally, negotiations will not be held in the same format as the previous round. Meanwhile, the EU and Great Britain will nevertheless exchange draft versions of free trade agreements, as well as other agreements.

The "black gold" prices continued to fall. Currently, futures for the WTI crude oil are testing the $25.65 mark per barrel. At 16:30 (GMT+2:00), US crude oil inventories will be published.

Market indicators

Yesterday, the main US stock indices recovered part of the losses after a significant collapse: #SPY (+5.40%), #DIA (+5.42%), #QQQ (+7.58%).

The 10-year US government bonds yield rose slightly. At the moment, the indicator is at the level of 1.12-1.13%.

The news feed on 2020.03.18:
  • - Consumer price index in the Eurozone at 12:00 (GMT+2:00);
  • - Statistics on the real estate market in the US at 14:30 (GMT+2:00);
  • - Core consumer price index in Canada at 14:30 (GMT+2:00).

by JustForex, 2020.03.18

We advise you to get acquainted with the daily forecasts for the major currency pairs.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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