Mar 23 2020 0

Despite our concerns of some big news release on the weekends which could cause the price to jump sharply, the market this morning doesn’t have many gaps and, in fact, is quite peaceful. Hope that you guys have a successful trading week. Let’s check out the most important updates for today and decide your trading strategy.

A painful market

The dollar fell in early Asia as investors carefully assessed the latest developments on the spread of coronavirus and stricter measures from countries to control it. The New Zealand dollar fell after the country's central bank said it would start buying bonds to stimulate the economy. The yen and Swiss franc rose sharply against the greenback. The US stock index futures contract extended losses to Monday when the S&P 500 index fell more than 4% on Friday; meanwhile, the Asian futures market signaled many upcoming declines. As investors try to assess the severity of the upcoming recession, James Bullard - President of the Federal Reserve Bank of St. Thomas. Louis predicted that the US unemployment rate could reach 30% in the second quarter due to the halt of activities to combat the virus. Morgan Stanley economists say the coronavirus will cause a more severe recession in the United States than previously expected, including a 30.1% drop in gross domestic product in the second quarter.

China expecting recovery

The Chinese government discusses the prospect of rapid economic recovery from coronavirus, even as the global economy is witnessing tighter blockade to prevent the spread of the disease. Since last Friday, the prime minister, who leads economic policy making and a senior central bank official, has said that the reason for optimism about China's prospects comes from ability to control outbreaks and resume their activities. However, the country faces the risk of losing more jobs and falling demand from abroad because the US, UK and EU all tighten restrictions on human activities because the number of deaths from the virus is going up very fast.

Close-down in Australia

Australia will enforce stricter controls to slow the spread of coronavirus, including the closure of pubs, casinos, restaurants and other venues from Monday after the number of cases is exceeded. 1,000 cases. Prime Minister Scott Morrison said the government was forced to intensify the reaction after many Australians ignored guidelines for social distance, as evidenced by thousands of people flocking to the beaches on weekends and delivering. reception in the bar. Mr Morrison said: "Classes should be open until the end of this term, although parents can take their children out of school if they prefer." Casinos, nightclubs, gyms, churches and other places of worship will be one of the other locations that will be closed.

Merkel in isolation

German Chancellor, Angela Merke,l isolated herself at home after contacting a coronavirus-positive doctor. The doctor gave Merkel a shot to prevent viral pneumonia, and the prime minister decided to isolate herself when she learned about the doctor's positive test. Mrs. Merkel will be regularly checked in the coming days and she will fulfill her responsibilities at home.

RBA backfire?

Just when investors thought central banks were starting to ease the heat of the global market, the focus of chaos turned to Australia - when the market went into crisis on March 19. The crisis was triggered by the announcement of the country's quantitative easing program - something that should have eased some tension, rather than worsening the situation. The market is constantly hurt when policymakers take measures to protect their economies from a virus pandemic they have never faced before. Low liquidity, algorithmic trading and the difference between investor expectations and the central bank's plans are the reasons why Australia is in the current situation.


Mario Draghi

Hey, I’m Mario Draghi. I’m a writer currently resided in Thailand. For my forex experience, I have been working with brokers and trading for 5 years. Hope that you'll enjoy my articles about all forex-related matters.

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