Gold 1617,30
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EURUSD 1,0821
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DJIA 21658,50
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OIL.WTI 27,365
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DAX 9526,75
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Markets survived the first week of April, but so far the main topic is the spread of COVID-19 virus in the world. Mortality is rising in the United States, as well as in Europe. In the next few months we expect the economic reporting of countries to be catastrophic. Although in many respects all the pessimistic sentiments of investors are already in the markets, no one knows how long this epidemic will last, but everyone understands that nothing good will happen.
EUR/USD
Markets are acting on their own right now. The spread of infection in the US is gaining momentum and it is likely to have a very strong impact on the first economy in the world. Even Donald Trump himself says there will be a lot of victims, how many he can’t say for sure. The U.S. Federal Reserve is working at its limit. The balance is growing at an astronomical rate, and no one knows what to do next in the current situation. Probably, in the near future there will be some algorithm in the work and cooperation of all world banks to resolve the crisis.
Euro
It is very difficult to assess the state of the currency, when all the news converge on how to fight the coronavirus in Europe. The situation is complicated when people are sitting in quarantine and the economy is not working at all. Euro, as predicted, has rolled back to the level of 1.08 due to the EU government’s weakness for specific measures. This week we will have to observe how Europe will cope with the epidemic. No economic data worries investors anymore. Everybody understands that this data will come out with very negative indicators and is unlikely to have a strong impact on the current situation.
Oil
There is a very interesting situation on the oil market. The leaders of the USA, Russia and Saudi Arabia held several telephone conversations with each other and agreed to reduce oil production. The market reacted instantly and prices went up. In the near future, we are waiting for concrete decisions between the main oil-producing countries and are monitoring the situation. It is possible that oil will rise in price this week on the optimism of these negotiations.
Gold
The gold stays on the trend. Our forecast for precious metal remains unchanged. It is very close to the level of 1700, and the situation in the world does not change for the better. Therefore, gold is expected to rise and the highs will be updated.
What’s waiting for us today?
08.00 Volume of production orders in Germany
10.30 UK Construction Business Index
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