This week is quite difficult for all sectors of the economy. In the U.S., corporate reporting is coming out, which will show how bad things are for companies in the current situation. If the giants do not report well, it is likely that the rally in the US market, which lasted several weeks, will stop.
The market is very fragile right now. Any breaking news or wrong actions by central banks can send stock markets down. Traders are now solving very difficult tasks, and should focus on a very large layer of statistics. In the current situation, investors are encouraged by the loosening of quarantine measures in some leading countries. DAX is growing by 1.27%, American S&P500 and DOW traded mixed. The price remained around the opening values. S&P500 – 2880, DOW – 24200.
The Australian dollar feels good after China started to recover its industry. The AUD/USD is now approaching the level of 0.66, which started the decline in early March. In the coming days, the Australian dollar will try to consolidate at this level, and further try to pass it higher. All hope is for a stable stock market, as the price of this pair largely depends on it.
The events of a week ago with the price of the May futures falling in the negative zone may be repeated. On Monday the price of June oil contract WTI fell by 25% to $ 12.7 per barrel, on Tuesday the fall continued by another 14%, to a minimum of $10.66. If the dynamics continues, the price of June futures may turn out to be negative a week before its expiry. And the collapse itself may be even stronger than last time…
Gold has been at its highs for two weeks now. Rising unemployment, economic turmoil and the lack of a cure for coronavirus are still straining most countries. Demand for physical gold is rising in China and India. Unprecedented cash injections into the largest economies will inevitably lead to the spin-off of inflationary processes, which in turn will affect the value of gold. The level of $1800 per ounce is very close and soon we will see how it will be tested.
What’s waiting for us today?
03.30 Consumer Price Index in Australia
14.30 US GDP for the quarter
16.30 US crude oil reserves
20.00 Fed interest rate decision
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