The virus is now spreading faster than ever. This can hit the economies around the world differently. So, we must check out all the latest news that can possible result in our chances in the forex market. Based on that, we can pick the right forex trading strategies.
Crude oil prices have fallen more than 20% and the US stock index futures fell more than 30% when the Asian session opened today. The Japanese yen was up about 1% against the greenback earlier in the session, while the Mexican peso fell against the Canadian dollar. The stock market in the Middle East fell sharply on Sunday when Saudi Arabia reduced crude oil prices as producers disagreed to cut supplies. Asian stocks are likely to fall even more.
Bond yields on both Australia and New Zealand both fell. Markets around the globe are preparing to welcome a week full of volatility as the virus continues to spread and cause many disruptions to the economy. The oil price war took place just as US stocks were in a period of adjustment and Treasury Bond yields hit a new all-time low. European Central Bank will consider many other factors before making interest rate decisions on Thursday.
About half of the countries in the world now have Covid-19 infections and the number of deaths outside of China is up to 700. The number of deaths in Italy has surpassed those in Korea, while France banned large gatherings to limit the spread of coronavirus. US officials participated in Sunday talk programs to help Americans change their daily routines more to reduce the consequences of Covid-19, from reducing travel to cancel big events. Meanwhile, Saudi Arabia has closed schools indefinitely.
Apple CEO Tim Cook has allowed employees at most offices around the globe to work from home. He calls the coronavirus epidemic an "unprecedented event in history" and a "challenging moment". Tim Cook said: "This policy will have a lot of impact on the areas with the highest infection rates" when referring to the company's offices located in the Santa Clara Valley and Elk Grove areas in California, Seattle, South Korea, Japan, Italy, Germany, France, Switzerland and the United Kingdom.
Encouraging employees in California and Seattle to work remotely is an additional move the company made last Friday. Amidst the developments surrounding Covid-19 virus, Apple was particularly affected when it had a global presence and a Chinese-based supply chain. Last month, the spread of the virus forced Apple to drop its revenue expectations of at least $ 63 billion in the third quarter. The company has seen supply constraints for the iPhone and iPad Pro caused by viruses. Analysts believe that a product delay is entirely possible.