FOREX TRADING STRATEGY APR 6 - GETTING UPDATED

Apr 06, 2020
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Knowing what's happening around the world at the beginning of the week is very important. It helps you predict how the prices will move easier and choose more suitable forex trading strategies.

It’s slowing down

After days of serious progress, the number of deaths reported daily in some coronavirus epicenters in the world was lower on Sunday. For the first time the number of deaths in New York state has decreased. Italy has the least number of deaths in more than 2 weeks. France reported the lowest in five days and the death figure in Spain has dropped for three consecutive days. Despite this, US President Donald Trump and other leaders warned of the increase in deaths and New York Governor Andrew Cuomo said it was too early to determine whether the outbreak had peaked in New York - coronavirus epicenter in the US or not. 

In a devastating warning, Mr. Trump warned of a "very terrible" period in the approaching pandemic. British Prime Minister Boris Johnson was taken to an undisclosed hospital for testing after being infected with coronavirus for 10 days and was unable to shake off its symptoms. Downing Street said it was "a preventive step". Meanwhile, philanthropist Bill Gates said on Sunday: "The number of coronavirus deaths in the United States may not reach the recent estimates of top health officials if measures prevent society. done properly."

The market is opened

The monetary market opened in chaos after the daily death toll reported in some coronavirus epicenters in the world has decreased, although traders will also watch closely when the futures market in the United States. States at the opening to assess market sentiment. The pound dropped when the British Prime Minister was admitted to hospital. Traders are also watching the price of oil at the open with a meeting from the producing countries scheduled for April 9. Oil plunged sharply in the Asian session following a delay in the meeting of leading producers to discuss output restrictions that raised suspicions of prospects for a deal: Brent futures dropped by 12 % after a sharp rise on Friday. Last week the stock market also fell at the close after the US employment report was published and suggested the impact of the disease on the world's largest economy.

The oil race

Following the announcement of US President Donald Trump on Twitter, the world oil price has surged, so on April 5, the price of light sweet crude oil WTI and Brent oil increased by 13-16% compared to the previous session. Specifically, the price of light sweet crude oil delivered WTI stood at 28.75 USD/barrel, up 13.55% from the previous session and up to 33.66% from the previous week.

Meanwhile, the price of Brent crude oil is also holding at US $ 34.77/barrel, up 16.13% from the previous session and 39.47% from the previous week. For nearly a month, world crude oil prices have seen consecutive plummeting sessions. In particular, on March 29 (US time), WTI oil price fell to 19.92 USD, Brent oil price fell to 23.03 USD, the lowest level in 18 years since 2002.

However, oil prices rebounded again when President Trump wrote on Twitter that Saudi Arabia and Russia could cut oil production by up to 15 million barrels a day. At one point, Brent oil price increased nearly 46% to 36.29 USD/barrel and WTI crude oil price also increased 35% to 27.39 USD/barrel. Up to now, world crude oil prices have fallen by 32-38% over the previous month and 49-53% over the same period last year.

Dealing in progress

Dealmakers are helping Australian companies do everything, from urgent capital gains to restructuring, after the coronavirus pandemic makes mergers and acquisitions fall into deadlock. According to a Bloomberg report, the country's negotiating activity has started the worst year since 2013. The negotiated activities announced in Australia dropped to $ 13.8 billion in the first quarter. This year, down 32% compared to the first 3 months of 2019. Australian bankers are joining their partners in other parts of the world to focus more on keeping their customers in touch. doing business when coronavirus wreaks havoc on the global economy.

Indian ban on hydroxychloroquine

India has banned all exports of hydroxychloroquine, a malaria drug that President Donald Trump has repeatedly called it a "game changer" in the fight against Covid-19. Last month, the Trade Administration restricted the export of drug shipments to foreign countries, allowing exceptions only on a humanitarian basis and meeting previous commitments. 

The ban reflects the fact that India is increasing its concern about the rapid spread of coronavirus, with the risk of community spread increasing in the country of 1.3 billion people. During a news conference on Saturday, Mr. Trump said he spoke with Indian Prime Minister Narendra Modi and appealed about the release of shipments that the United States had ordered. He said India was "seriously considering" his offer.