Coronavirus Pandemic Continues to Impact Markets Negatively

The US dollar continued to decline against a basket of major currencies. On Friday, the dollar index (#DX) closed in the red zone (-0.66%). Last week, a report on the jobless claims was published. According to the report, the number of claims increased even more and counted to 6.606K, while experts expected 5.250K. The American currency is under pressure due to the further spread of the coronavirus. Over the weekend, US President D. Trump has declared a major disaster in 50 states. This happened for the first time in history. In the United States, 557,590 COVID-19 cases were recorded.

At the same time, the Japanese currency is strengthening for the fourth day in a row amid continued demand for the "safe haven" assets in the context of the coronavirus pandemic. The yen is also supported by the decision of the Japanese government to provide about $1 trillion to support the economy, including direct payments to citizens.

The "black gold" prices have declined as investors still concerned about the sharp drop in global oil demand. On Sunday, the OPEC+ group agreed to reduce oil production by about 10 percent of global supplies in order to maintain oil prices amid the spread of coronavirus. However, despite this, investors are still worried about raw material consumption forecasts. Currently, futures for the WTI crude oil are testing the $23.20 mark per barrel.

Market indicators

On Friday, there was the bullish sentiment in the US stock market: #SPY (+1.52%), #DIA (+1.20%), #QQQ (+0.14%).

The 10-year US government bonds yield has not changed. At the moment, the indicator is at the level of 0.72-0.73%.

The news feed on 2020.04.13:
  • Today, the publication of important news is not expected. Most financial markets are closed due to the Easter holidays.

by JustForex, 2020.04.13

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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