Forex Today: Fears about Kim Jong-un's health, oil's historic negative price, coronavirus carnage weigh


Here is what you need to know on Tuesday, April 21:

Markets are back to a risk-off mood amid that is keeping the US dollar, Japanese yen, and gold in the lead. Concerns about North Korea, oil, and coronavirus are weighing on the mood. 

North Korea: Reports about leader Kim Jong-un is reportedly in a critical situation following heart surgery raises concerns about succession in the nuclear rogue nation.

Paying to sell oil: Contracts of WTI oil for May tumbled down to negative territory for the first time, reaching -$40, a drop of over 300%. Contracts for June have begun representing WTI as a whole and are above $21. Apart from technical issues with rolling over from May to June and oddities related to the USO Exchange Traded Fund (ETF), oil has tumbled due to oversupply.

Lack of demand due to coronavirus lockdowns caused storage in Cushing and other places to fill and various physical prices in the US turned negative. Russia and Saudi Arabia have been mulling bringing forward production cuts from early May to now. 

US: President Donald Trump announced he would suspend incoming immigration, without offering details. New York State reported ongoing improvement – the sixth day in a row. House Speaker Nancy Pelosi said that a new economic relief deal is coming down to the fine print. A broad agreement could boost sentiment. US Existing Home Sales for March may show a significant drop.

See Existing Home Sales: Unemployment strikes the housing market

Europe: Encouraging drops in coronavirus cases and deaths have been reported in Spain, Italy, and France, yet all three countries have over 20,000 mortalities from the disease. The figures may be skewed by the weekend effect and Tuesday's statistics may see a jump.

Ahead of the EU leaders conference on Thursday, Spain suggested creating an aid package worth €1.5 trillion and received support from several European officials. The Bank of Spain forecasts a plunge of 12% in the economy this year. A north-south gap around coronabonds is weighing on the euro. The German ZEW Economic Sentiment will likely move the common currency:

See German ZEW Preview: Less bad doesn’t mean good, no chances for EUR

UK: Parliament is back and will scrutinize the government's handling of COVID-19. Despite a drop in cases reported on Monday, Prime Minister Boris Johnson is reportedly reluctant to ease the lockdown, which is set to remain in place at least until early May. UK jobless claims are set to leap tenfold. Around a million employers have asked to participate in the government's furlough scheme and around 80% have been approved. 

Antipodeans: The New Zealand dollar has been on the back foot after Adrian Orr, Governor of the Reserve Bank of New Zealand said he is open-minded on directly monetizing the government's debt. Phillip Lower, Governor of the Reserve Bank of Australia, stressed that Quantitative Easing should not be confused with financing the government. The Aussie is down as well despite the RBA's minutes stating that QE will likely smaller and less frequent. 

COVID-19 cases are nearing 2.5 million and over 170,000 deaths have been confirmed. The US infections are nearing 800000, followed by Spain at just over 200,000, then Italy, France, Germany and the UK. The US reported over 42,000 losses of life, followed by Italy at over 24,000.

Cryptocurrencies have been edging higher after losing ground earlier, with Bitcoin trading around $6,900.

More Coronavirus: What forex traders should look for and the one thing to avoid – Interview with Navin Prithyani

Share: Feed news

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


Recommended content

Editors’ Picks

EUR/USD retreats toward 1.0850 despite weak US employment data

EUR/USD retreats toward 1.0850 despite weak US employment data

EUR/USD loses its traction and declines toward 1.0850 after testing 1.0900 earlier in the session. Because Nonfarm Payrolls data for October missed the market expectation by a wide margin due to hurricanes and strikes, the US Dollar manages to hold its ground.

EUR/USD News
GBP/USD climbs above 1.2950, looks to end week little changed

GBP/USD climbs above 1.2950, looks to end week little changed

GBP/USD benefits from the improving risk mood and trades in positive territory above 1.2950 in the American session on Friday as markets ignore the weak labor market data from the US. The pair remains on track to end the week flat.

GBP/USD News
Gold clings to small gains near $2,750 after US data

Gold clings to small gains near $2,750 after US data

Gold clings to marginal recovery gains and trades slightly above $2,750. The 10-year US Treasury bond yield struggles to push higher after the dismal October jobs report and weaker-than-expected PMI data from the US, helping XAU/USD keep it footing.

Gold News
Bitcoin Weekly Forecast: Run toward fresh all-time high hinges on US presidential election results

Bitcoin Weekly Forecast: Run toward fresh all-time high hinges on US presidential election results

Bitcoin could experience a price pullback in the next few days ahead of the US presidential election, analysts say, an event that will be key to determining whether and how the crypto class will be regulated in the years to come.

Read more
Bank of Japan holds rates steady amid signs of modest GDP growth

Bank of Japan holds rates steady amid signs of modest GDP growth

Monthly industrial production results have been mixed but generally indicate a modest recovery in third-quarter GDP. Clear guidance from the Bank of Japan remains elusive, with each upcoming meeting being pivotal.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures