The pandemic is going down. Will there be an appetite for risk?

By 08/04/2020News
Morning Stock News

Gold   1650,70
(+0,14%)

EURUSD   1,0869
( -0,20%)

DJIA  22730
(+0,99%)

OIL.WTI  25,185
(+3,86%)

DAX   10216,35
(+ 0,02%)

For the second day in a row, investors are on the positive side due to positive signals in the fight against the coronavirus pandemic. Many countries have said they have already overcome the peak of the disease and are seeing a decline in the number of people entering the intensive care units.


EUR/USD

Most stock markets are growing on increasing investor appetite for risk. Once again, we see that the current quotes of the major indices are underestimated, and as soon as the opportunity arose, investors began to buy back shares very well. The DAX index rose by 2.79% and the S&P500 index tried to take the level of 2700, but failed to overcome it, trading at 2690 by the end of the trading session.


Euro

Yesterday’s meeting of the Eurogroup brought quite optimism to investors. Expectations of agreements between financial leaders of European countries showed that EUR/USD has grown to the level of 1.09. The nearest days will show how the epidemic is developing in the European Union, whether the countries are at the peak of diseases or it is just a break from the virus. The economy is beginning to adapt to this situation, and some countries are thinking about weakening the quarantine for the cured. The ECB is doing what it can to redeem the crisis and give the markets the liquidity they need. If we continue to see positive trends in the epidemic in Europe, we will see the Euro currency strengthening.


British Pound

The UK is still struggling with the disease, as is Prime Minister Boris Johnson himself. Interestingly, many analysts believe that the pound rate depends on the health of the Prime Minister. The news is that Johnson is in a stable state, the pound is rising. It’s increasingly dependent on completely random factors. In any case, the UK has much more room for maneuver with their currency. In the near future, we can see a good strengthening of the pound as soon as positive news on the fight against the coronavirus. The GBP/USD pair remains at 1.23 and is trying to break through the level of 1.24.


What’s waiting for us today?

16.30 US crude oil reserves
20.00 Publication of FOMC minutes in USA


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