Gold 1659,16
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EURUSD 1,0824
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DJIA 22469
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OIL.WTI 26,985
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DAX 10215
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It is already April, and the situation in the world economy and financial markets looks very alarming and not very predictable. Markets are highly dependent on many factors, so Monday’s bullish growth is probably the result of news of a slight improvement in the Coronavirus pandemic.
Gold
This is not the first or the last crisis in the world economy, but what is most alarming is that in the movement of stock indices and commodity prices there is less real economy, but more random factors. On Monday, major indices rose quite well, but it was more like a technical correction before another wave of decline. The DAX rose 5.7% and closed at 10072, while the S&P500 rose more than 6%. Although the S&P500 rose impressively, the rally looks weak. The bulls are facing tough resistance at the current level.
Euro
The Euro stays under pressure. The fight against the virus is very slow and the economy and especially small and medium sized businesses are severely affected. A meeting of the Eurogroup will take place today at which we would like to hear a strong solidarity on fiscal policy for the near future. If the results of this meeting are similar to the previous one, where there was a complete lack of agreement among the leaders of financial markets, then the euro could suffer very badly. On Monday, EUR/USD traded at 1.0780.
Oil
The oil market is now very much dependent on political decisions. The OPEC meeting has been postponed to April 8-9. The US has made it clear that it is not going to reduce its oil production and in this situation it has a much greater margin of safety than small players in the market. The meeting will be the key one for prices, but even if the decision to cut is made, the demand for oil will remain squeezed due to the virus spread. The maximum we can see in the near future is the WTI oil price reaching above $30 per barrel.
Gold
The first trading day of the week showed the current investors’ sentiment. A strong rise in price per ounce indicates that the appetite for risk is completely lost, and investors are trying to wait out the volatility and uncertainty in the markets. Some technical correction is possible in the coming days, but the level of $1700 is already very close and we think that gold will try to break it this week.
What’s waiting for us today?
06.30 Decision on interest rate in Australia
08.00 Volume of industrial production in Germany
12.00 Eurogroup meeting
16.00 Canadian Business Activity Index
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