Here is what you need to know on Wednesday, April 22:
The market remains damp and the US dollar is consolidating its gains after a risk-off day on Tuesday which saw markets tumbling as crashing crude prices remain in the spotlight.
WTI remains on the back foot around $10 and Brent Crude has also succumbed to pressure and trades below $20, to the lowest since 1999. An unscheduled OPEC+ teleconference has failed to yield any relief. Technical quirks around the expiration of contracts and Exchange Trade Fund holding have added fuel to the fire of volatility in WTI. The lack of demand and filling storage in the US weighs on the black gold. US oil inventories' figures are due out later on.
American lawmakers have agreed on another stimulus bill worth $484 billion, mostly focused on small businesses. Several governors say more money is needed for states. US coronavirus cases have topped 825,000 and deaths the top 45,000. US Existing Home Sales showed a significant drop in March.
Europe: Italy, Germany, and Austria are moving toward lifting some of the restrictions as COVID-19 figures continue to gradually improve. Spanish and French statistics have also shown progress. Governments are struggling to strike a balance between preventing a second wave of infections and hurting the economies.
The European Central Bank is set to discuss loosening some of its bond-buying rules, potentially venturing into junk bonds. The ECB continues deploying its QE scheme to keep Italian yields low. EUR/USD has been circling around 1.0850. Tension is mounting towards the EU Summit on Thursday. as countries clash over coronabonds.
UK: The government came under criticism of its handling of the crisis as parliament resumed its discussion using technology. Health Secretary Matt Hancock said that they are "throwing everything" at potential vaccines. Andrew Bailey, Governor of the Bank of England, warned that lifting the lockdown too early and reapplying it would damage the economy even more.
GBP/USD was the loser on Tuesday, falling below 1.23. UK inflation figures for March are set to show a deceleration in the headline Consumer Price Index. Job figures came out marginally above expectations.
AUD/USD jumped in response to a leap of 8.2% in retail sales in March, fueled by stockpiling. NZD/USD also edged higher before both currencies settled lower also as Australian skilled job vacancies plunged by 5.3% in March. Canada publishes inflation figures for March, yet the focus for the loonie remains on oil.
Cryptocurrencies have been trading in narrow ranges, with Bitcoin below $7,000.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD bounces off lows, retests 1.1370
Following an early drop to the vicinity of 1.1310, EUR/USD now manages to regain pace and retargets the 1.1370-1.1380 band on the back of a tepid knee-jerk in the US Dollar, always amid growing optimism over a potential de-escalation in the US-China trade war.
GBP/USD trades slightly on the defensive in the low-1.3300s
GBP/USD remains under a mild selling pressure just above 1.3300 on Friday, despite firmer-than-expected UK Retail Sales. The pair is weighed down by a renewed buying interest in the Greenback, bolstered by fresh headlines suggesting a softening in the rhetoric surrounding the US-China trade conflict.
Gold remains offered below $3,300
Gold reversed Thursday’s rebound and slipped toward the $3,260 area per troy ounce at the end of the week in response to further improvement in the market sentiment, which was in turn underpinned by hopes of positive developments around the US-China trade crisis.
Ethereum: Accumulation addresses grab 1.11 million ETH as bullish momentum rises
Ethereum saw a 1% decline on Friday as sellers dominated exchange activity in the past 24 hours. Despite the recent selling, increased inflows into accumulation addresses and declining net taker volume show a gradual return of bullish momentum.
Week ahead: US GDP, inflation and jobs in focus amid tariff mess – BoJ meets
Barrage of US data to shed light on US economy as tariff war heats up. GDP, PCE inflation and nonfarm payrolls reports to headline the week. Bank of Japan to hold rates but may downgrade growth outlook. Eurozone and Australian CPI also on the agenda, Canadians go to the polls.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.