May 18 2020 0
Big news on Monday. These events will affect the market heavily. So let's check them out and see what forex trading strategies to apply.
FED’s warning
Federal Reserve Chairman Jerome Powell said: "The recovery of the US economy after the coronavirus pandemic will probably last until the end of next year and this will depend on the ability to supply vaccines. If there is no second coronavirus wave, I think the economy will recover stably in the second half of this year. " More than 36 million Americans have lost their jobs since February when the economy was shut down to limit the spread of viruses and countless companies, especially small businesses, are on the verge of bankruptcy. The Fed chief advised that people should never "bet" on the rapid recovery of the US economy.
The market is back
The pound fell in early trading on Monday after a BoE official said the central bank was testing a range of other policy instruments than usual, including negative interest rates. The Asian stock market futures will have a chaotic start. The pound fell about 0.3% against the greenback, while the rest of the money market made quiet moves. The US futures market opened in the green even after the Fed warned of the dangers of a "significant drop" in the stock market and other assets if the coronavirus pandemic worsened. The futures market in Japan and Hong Kong declined, while in Australia increased. Global stocks are returning to the drop last week, when the rally from the bottom of March is showing signs of stagnation.
Keep blaming
The Trump administration has stepped up its campaign to blame China for the deadly coronavirus pandemic that Beijing has sent a sick passenger to every country in the world. This is the latest development in an almost daily US attack on China, including a past implication that the virus has leaked from a laboratory in downtown Wuhan. China's initial virus treatment will be scrutinized at the first meeting of the World Health Organization's governing body, since Covid-19 caused a worldwide storm. Meanwhile, China's National People's Congress will take place this week - two months later than the usual schedule due to the pandemic. Cases of coronavirus infections in the United States have increased by 1.5% in the past 24 hours, marking a decrease in the rate of daily spread for the third consecutive day. Western New York and the surrounding area of Albany are ready to reopen. The United Kingdom will be the first country in line to wait for the AstraZeneca vaccine. Tesla was allowed to reopen its factory in California after first challenging local officials.
Big cut
The Emirates Group is considering cutting about 30,000 jobs, the deepest cut in the global aviation industry due to the coronavirus pandemic. The world's largest long-haul carrier can shrink up to 30% of its March salary to 105,000 because it has to reduce costs and readjust its operations to cope with the expected slowdown in the tourism industry. last for many years. The state-owned conglomerate raised $1.2 billion for new funding in the first quarter and is seeking aid from Dubai. Emirates is also considering stepping up its retirement decision for the A380 fleet - a giant double-decker jet that can accommodate more than 500 passengers.
New Zealand rebuilds
The lofty ambition to eliminate New Zealand's coronavirus can bring positive signals as they begin to rebuild the economy and declare themselves a safe haven for global businesses. The government said that, with the fast and fierce strategy of chasing Covid-19, the kiwi will be returned to normal status faster after the close blockade ends. To take advantage of this, the Minister of Finance has announced a fiscal stimulus package worth more than 20% of gross domestic product, which is expected to begin to grow and bring unemployment back to the level of the virus (which is 4.2%) within 2 years. The island nation at the end of the world seems to have succeeded in quenching the virus by only reporting 2 new cases in the past 6 days. Prime Minister Jacinda Ardern said this would give the country a "safe haven strategic advantage" to help the nation's currency recover before other peers.
