Markets are not recovering from the growing pandemic in the world, and are under great pressure. Due to the growing number of diseases, the forecast of mortality is growing, in turn, investors are abandoning risky assets and prefer calmer products such as gold. The coming couple of weeks will be very difficult for the whole world, because the epidemic is raging and there is no prediction when the disease will go down.
American markets have mixed reactions to the current situation. On the one hand we see a huge unemployment problem that has been going on in the last few months, on the other hand we see an Fed that wants to keep any, even the smallest, business in the US. It is not yet clear how this struggle will end. The S&P on Thursday is practically standing still. DAX is up 0.3% to 9570.
The European currency is going through a difficult time. In the Eurozone, no decisions have yet been made to stabilize the economy. Complicated situation with the pandemic, lack of coordinated decisions between the leaders of European countries lead to problems in the European currency. The Euro has been falling for the fourth consecutive day and until we see some serious action from the EU, the decline will continue.
How important it is when world leaders announce certain arrangements for oil production. On Thursday, negotiations between the leaders of the USA, Russia and Saudi Arabia to reduce oil production added optimism to investors. The price of WTI oil rose by 20% in a very short time. Reduced supplies are a very good sign for the markets in the current situation. If the leaders keep their promises, we will see a correlation between supply and demand, which will have a positive impact on the oil price.
Gold continues to move to its highs, and there is no reason to stop. Maybe today we will see a certain correction in price due to weekly profit taking. If that happens, the price decline will be a good level for buying gold for the next few weeks. This metal is in the favorites and will add to the price.
What’s waiting for us today?
10.30 UK Service Business Index
14.30 US Change in Non-farm Payrolls
14.30 US unemployment rate
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