The first trading week of May will end on Friday. Throughout the week, we watched the world cool a little bit from the Coronavirus Pandemic news flurry and the economy learn to live in the new realities. There is still a long recovery process ahead, which is already slowly beginning to gain momentum.
On Thursday, we learned that more than 3 million new jobless people were added to the U.S. over the week. These are big numbers, but this is the lowest number in 3 weeks. Probably, investors have already put the pessimistic unemployment forecast into their trading strategies, so investors did not react much to these data. What they will care most about is how fast the USA will recover from the crisis after the recession. Markets on Thursday were trading in a positive mood. DAX rose by 1.44%, while S&P500 is pulling out technology and communications again. It is up 1.4%, but still below 3000.
The Euro rebounded from the support at 1.0760 and is consolidating near the level of 1.0830. Now most of the currencies are under observation and are not making strong price movements. The Euro is still weak and will remain so until there are signs of economic recovery in Europe. The German court also had some influence on the Euro, which started the process against ECB in a very difficult time. Instead of thinking about how to get the economy out of decline more quickly, Christine Lagarde should answer to the German court and explain her actions.
There’s no way gold can get out of the side. On Thursday, there is another attempt to consolidate above $1700 per ounce. Gold doesn’t have enough good news background to try to reach the historic highs. The relative strengthening of the dollar and the weakening of the quarantine measures are holding back the precious metal’s rise. So far, the growth forecast is not canceled. The situation in the world has not become better and the quarantine result will be seen later, when the companies that cannot be saved will go bankrupt.
On Thursday, the first cryptocurrency broke through 9500 with a strong movement and quickly reached 9800, which is so close to the coveted $10000 for 1 BTC. Almost all crypto media are hipped in the upcoming halving and this has a big impact on demand. But we know that the bitcoin market is unstable and can move in the opposite direction at any moment. According to the analysis of “whales” wallets of the crypto market, we can see that they have stopped accumulating bitcoins and are most likely prepared to sell on highs. This is an alarming sign, because usually at such moments, a large number of coins are drained to the crypto beginners who buy on the news, and the price falls quite low and fast. In the face of serious growth, it would be worth refraining from buying cryptocurrency at this time and watching the hustle and bustle of halving.
What’s waiting for us today?
13.00 Trade balance in Germany
14.30 Change in the number of non-agricultural employment in the United States
14.30 US unemployment rate
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