Demand for the Greenback Has Weakened Significantly. COVID-19 Epidemic Continues to Affect the Global Economy

The US dollar fell again relative to a basket of major currencies. The dollar index (#DX) closed in the negative zone (-1.53%). The US dollar was under pressure due to a record number of jobless claims. Investors expected a value of 1.65 million, but in fact, the number counted to 3.28 million. At the same time, Federal Reserve Chairman Jerome Powell assured investors that the Fed "is not going to run out of ammunition" and the regulator still has methods to maintain the economy. Also, in the United States, a record number of coronavirus cases was reported, which counted to 85,996. Thus, the United States overtook China and Italy in terms of the number of infected.

The British pound rose slightly after the Bank of England meeting. So, the regulator decided not to lower the key interest rate and left it at the level of 0.10% per annum. The £200 billion asset buyback program has also not been adjusted.

The "black gold" prices continue to consolidate. Currently, futures for the WTI crude oil are testing the $22.80 mark per barrel. At 19:00 (GMT+2:00), U.S. Baker Hughes Total Rig Count will be published.

Market indicators

Yesterday, there were aggressive purchases in the US stock market: #SPY (+5.84%), #DIA (+6.14%), #QQQ (+5.27%).

The 10-year US government bonds yield fell again. At the moment, the indicator is at the level of 0.77-0.78%.

The news feed on 2020.03.27:
  • - Michigan consumer sentiment and expectations at 16:00 (GMT+2:00).

by JustForex, 2020.03.27

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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