Gold 1597,88
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EURUSD 1,1147
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DJIA 26313,50
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OIL.WTI 47,45
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DAX 12055,78
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On Monday, the markets showed a good recovery. Investors have high hopes for easing monetary policy and increasing liquidity amid the impact of the COVID-19 virus on the global economy. Heads of Fed, Bank of Japan and Bank of England said that they will do their best to stabilize financial markets.
EUR/USD chart of the day
After last week’s record-breaking declines on the stock exchanges, the weekend was very opportune to “cool down” traders and give them time to make decisions. Positive statements of the Fed’s head on support of the US economy during the epidemic, as well as decisive actions of Bank of Japan on liquidity support encouraged traders to buy. S&P500 index is up 2.1% to 3031, DOW index is up 2.5% to 26200. The DAX index did not go up and remained at the level of 11850.
EURO
The Euro rose to a five-week high against the US dollar on Monday. Following the Fed’s head’s announcement of a likely policy easing already at the March meeting, traders are betting that other world banks are likely to follow the US and soften their financial policy, while the ECB is very limited in its rate cuts compared to the US. German PMI showed a slight slowdown in the decline, which also had a positive impact on the rate. At this stage, the growth is probably exhausted and we will see a slight correction.
OIL
Brent oil is growing by almost 5% on Monday, in clear response to claims that world banks will support their economies during the Coronavirus epidemic. Positive expectations for the decision to reduce production at the OPEC meeting add optimism to traders. All attention will now be focused on the OPEC meeting, as well as the growing conflict in Syria. Crude oil price seems to continue to recover all week, and at the OPEC meeting increased volatility is quite possible.
What awaits us today?
04.30 Australian interest rate decision
10.30 UK Construction Business Index for February
11.00 European Union Consumer Price Index for February
16.00 Unemployment rate in the European Union
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