On Thursday we see a moderate correction in financial markets. Reporting and hopes that the pandemic will soon be defeated are encouraging for investors, although it is very fragile. According to experts, the markets will no longer have a second “bottom”, and they will begin to recover soon. The forecast is ambiguous, because nobody knows if the second wave of infection will occur and if so, how strong it will be.
European countries are beginning to slowly mitigate quarantine measures, which has a positive impact on the economic climate. The main news on Thursday was data on initial unemployment claims in the USA. It turned out to be 5.245 mln, which is less than last week. A decline is a good sign that indicates the recovery of some sectors of the economy, but still unemployment in the USA is almost at the historical records. The DAX closed at 10301, which is 0.2% more than the previous day. The S&P500 index traded with a slight increase at 2790. On Friday, macroeconomic data on China will be released, which will indicate how one of the largest producers in the world suffered. These data will give information on how deep the economy has fallen and how quickly it will recover.
Even the positive news that European countries are beginning to weaken quarantine, does not give any impulses for the EUR/USD pair growth. The morbidity statistics is still high, and some experts expect the second wave. Therefore, at this stage, investors prefer to keep their money in the assets and wait for the best moment. On Thursday, EUR was trading at the level of 1.0840.
Canada will have to mobilize substantial resources to stimulate the economy to avoid a construction crisis, as well as to cope with a collapse in energy prices. So far, the USD/CAD pair is growing to 1.45, where there will be another resistance test. Canada has one hope that the US Federal Reserve will pull out its economy. In this case, the US dollar is going to decline.
Bitcoin still has its own peculiarity – volatility. After dropping to $6500, Bitcoin showed a sharp jump to $7100. Strengthening of the first cryptocurrency is accompanied by an increase in trading volumes. Investors are coming back, probably soon the bitcoin will try to go above $7000 and try to break the support at $7400.
What’s waiting for us today?
04.00 Chinese GDP
04.00 Volume of industrial production in China
11.00 Consumer Price Index in Europe
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