Apr 13, 2020

After the explosive Thursday session, the Friday session was quite bleak and there did not seem to be any significant price movements on the major currency pairs. Today may be the same as in 8 markets of 8 major currencies, only the US and Japan are still trading. In addition, today economic data is not very important. Get your trading strategy ready.

In defense

Global equities began the week in a defensive way as investors were ready for the earnings season amid unprecedented uncertainty about the impact of companies in the coronavirus pandemic. Oil prices increased with volatile trading volumes following a historic output-cut deal.

On the decline

The US futures market fell in early Asia. Meanwhile, stocks in Japan and Korea also went down. Many markets remain closed for the Easter holiday. The dollar fell after OPEC+ agreement on cutting 9.7 million barrels of oil per day from crude output globally, which is slightly less the original plan of 10 million barrels. The yen appreciated higher and the Australian dollar slipped. Treasury bonds are little changed. The euro stabilized after France, Germany, Italy and Spain reported a slowdown in new cases of coronavirus infection.

Income report

This week, with the impact from the earnings season, investors are looking forward to a better feel the extent of the negative effects on global profits when coronavirus ramps up the world economy. What happens next month will bring very high uncertainty to companies that are having trouble grasping the current situation and predicting where things are going to go in near future.

Meanwhile, Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, said: "Without an working remedy or vaccine for the new coronavirus, the US economy could face 18 months of no working when the disease breaks out again."

Coming up this week

  • American financial firms and banks such as JPMorgan, Bank of America, Citigroup, BlackRock... will be publishing their first-quarter earnings reports.
  • Bank of Indonesia will hold a meeting in order to decide the interest rate this Tuesday.
  • South Korea held parliamentary elections and Bank of Canada announced interest rate decisions on Wednesday.
  • Also on Wednesday, US retail sales were poised to drop in March.
  • China are announcing their GDP, retail sales and unemployment data, and industrial production numbers on Friday.

Movements in markets

Stock market

  • Futures on the S&P 500 index fell 1.1% at 9:09 am in Tokyo.
  • Japan Topix index decreased by 0.9%.
  • South Korea Kospi index fell by 0.5%.

Currency market

  • The yen increased by 0.1% (to 108.33/USD).
  • The offshore renminbi is trading at 7,0506/USD.
  • The euro has stabilized at $1.0935.

Bond market

  • The yield of 10-year Treasury notes was little changed at 0.72%.

Commodity market

  • West Texas Intermediate crude oil rose 3.6% to $23.58/barrel.
  • Gold fell 0.2% to $1,692/ounce.