Currency Majors Have Become Stable. Investors Continue to Assess the Risks of the COVID-19 Spread

Yesterday, the greenback weakened against a basket of world currencies. The dollar index (#DX) closed in the red zone (-0.25%). At the moment, currency majors are stable. Financial market participants assess the risks of the further spread of coronavirus and its impact on the global economy. The US Federal Reserve continues to provide stimulus measures. On Monday, the regulator introduced a new range of programs for large companies, households and small businesses. It should be recalled that earlier, the Central Bank urgently reduced the range of key interest rates to 0.00-0.25%.

British Prime Minister Boris Johnson imposed a strict quarantine in the country to fight the coronavirus epidemic. The official said that the government would offer support to the economy and impose restrictions, including public gatherings of more than two people for at least three weeks. Today we recommend paying attention to important economic releases from Germany, the Eurozone, the UK and the US. These statistics may affect the dynamics of the main currency pairs in the short term.

The "black gold" prices have started recovering after a significant collapse. At the moment, futures for the WTI crude oil are testing the $24.80 mark per barrel.

Market indicators

Major US stock indices continue to show negative dynamics: #SPY (-2.56%), #DIA (-3.01%), #QQQ (-0.14%).

The 10-year US government bonds yield rose slightly. At the moment, the indicator is at the level of 0.80-0.81%.

• - Indicators of economic activity in Germany and the Eurozone at 10:30 and 11:00 (GMT+2:00), respectively;
• - Statistics on economic activity in the UK at 11:30 (GMT+2:00);
• - Data on economic activity in the US at 15:45 (GMT+2:00);
• - New home sales in the US at 16:00 (GMT+2:00).

by JustMarkets, 2020.03.24

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.