FOREX TRADING STRATEGY MAY 7 - GETTING HEATED

May 07, 2020
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Some countries are recovering from the outbreak. Some are still struggling. Let's check out the latest events and see if our trading strategies for today is suitable or not.

Heated debate

Foreign Minister Michael Pompeo once again criticized China's handling of the coronavirus pandemic, confirming that it had concealed the origin of the virus. But he defused previous statements about "hard evidence" that the virus had leaked from a lab there. However, his comments will signal another escalation in the war between the Trump administration and the Chinese government over which pandemic and economy blame the pandemic. Most of the world will take the lead in stopping the spread of the virus.

On the virus situation: California has reported the biggest spike in cases in a day and New York Governor Andrew Cuomo warned that his state's seemingly improved data is obscuring an appalling outbreak. in the United States. The death toll in the UK has risen to 30,000. Germany, Denmark and the Netherlands are planning additional steps to ease their restrictions, while Russian President Vladimir Putin has warned against rushing to do so. In the meantime, WHO says infected subjects can help speed up vaccine research. In addition, the Covid-19 research groups are currently under attack by hackers.

Bearish market

Asian stocks are likely to follow the decline of US stocks, as investors are receiving mixed earnings reports from businesses and worse economic data. The dollar became strongest in about 3 weeks, while Treasury Bonds slipped. The Japanese futures market fell sharply as the market reopened after a 3-day holiday. The futures market in Australia and Hong Kong also went down. The S&P 500 index fell for the first time in three days, although the Nasdaq Composite has yet to decline thanks to technology stocks and non-essential consumer goods. One report showed that US companies cut a record 20.2 million jobs in April. Yields on 10-year Treasury Bonds surged the most in a week as the United States increased the amount of debt they expected. intends to issue in the quarterly return auction to a record high of $ 96 billion. Oil has plunged after a double price increase in the past 5 days.

Winter is coming

Six weeks after closing economies to prevent the coronavirus from spreading, Australia is finally preparing to relax the blockade on Friday. Thanks to the closure of restaurants, movie theaters and pubs, as well as calling for the majority of people to stay home, the new daily infection rate in Australia has dropped to less than 0.5%, compared to about a month earlier. is 20%. This 25.7 million country will be one of the first developed countries to test the resilience of the health system by removing restrictions when the weather gets colder. Prime Minister Scott Morrison said that the health system was in a favorable position to cope as he moved to revive the economy. But the risk is also very clear: A cluster of nearly 50 cases at a meat processing plant will be a reminder in case the outbreak appears and is likely to get out of control, especially when winter is coming.

Attack on gold

An island nation in the Pacific Ocean, which meets the demand for the majority of mineral wealth from resource companies, has forced Barrick Gold to do something the global pandemic was unable to do - to cut their expected output in 2020. Less than a month after saying that Barrick Gold could guarantee its production, the world's second largest gold miner said it expected to produce only 4.6 million to 5 million ounces of gold a year. Now, it has been reduced to 200,000 ounces of gold, after a conflict with the government of Papua New Guinea (PNG).

In April, the Toronto-based mining company said it would challenge the PNG government's decision to deny the right to continue mining Porgera gold, which accounted for about 5% of Barrick's gold output last year. Yesterday, Chief Executive Mark Bristow said: "We were forced to do that because we had lost the mining rights." Mr Bristow said a judge at PNG had confirmed the gold mine was still closed while the two sides started "substantive discussions". The gold miner was ordered to return to court on May 8 to report on the process.