Here is what you need to know on Monday, March 30:
The haven demand for the US dollar is back in play starting out a fresh week, allowing the greenback to recover some ground after last week’s plunge, although S&P 500 futures are rebounding and therefore, suggesting limited upside.
The optimism spurred by the US $2 trillion stimulus and global relief measures deployed to fight the coronavirus pandemic fades, as investors remain worried about the intensifying virus spread and mounting global recession fears, with lockdowns announced by most governments.
See:
- Is a US recession inevitable? What does the history of consumer sentiment tell us?
- Will U.S. Dollar Rebound After Rough Week?
USD/JPY fell sharply towards 107.00, as the safe-haven yen drew bids amid falling Asian stocks and Treasury yields, although the losses were capped broad US dollar rebound. However, EUR/USD and the cable suffered the most, correcting last week’s surge. EUR/USD dropped back below 1.1100 ahead of the German Preliminary CPI report while GBP/USD surrendered the 1.24 handle.
Meanwhile, the Australian and New Zealand dollars also slipped against the greenback, despite the Chinese central bank’s surprise Repo rate cut. The Canadian dollar traded with sizeable losses, as oil prices slumped, with pandemic fears denting the oil demand outlook.
Coronavirus spread intensifies so does the economic risk around the world, with nearly 34,000 deaths reported. The US has emerged as the latest epicenter, with more than 137,000 cases and 2,400 deaths and lockdowns are toughening worldwide. US President Trump backtracked on its plans to re-open the economy by Easter, instead, he extended the social distancing guidelines until April 30. Across the Atlantic, Italy’s death toll is now the highest in the world at 10,023, Spain’s fatalities continue to climb while the UK warned of a six-month lockdown as New York state death toll tops 1,000.
Gold has come under heavy selling pressure and now heads back towards $1600 mark.
Cryptocurrencies are attempting a minor recovery after the weekend slump, with Bitcoin trading around $6,200.
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 falls toward 1.0500 amid risk-off mood
EUR/USD has come under fresh selling pressure, easing toward 1.0500 in the European session on Thursday. The pair faces headwinds from risk-off flows due to rising geopolitical conflict between Russia and Ukraine and worries over the potential US tariffs on the EU. ECB- and Fedspeak are awaited.
GBP/USD stays pressured toward 1.2600 ahead of US data, Fedspeak
GBP/USD remains pressured toward 1.2600 in European trading on Thursday. The pair's underperformance could be attributed to a risk-aversion market environment. Traders stay cautious amid rife geopolitical tensions ahead of mid-tier US data and Fedspeak.
Gold price extends gains beyond $2,650 amid rising geopolitical risks
Gold price extends its bullish momentum further above $2,650 in Thursday's European session. Gold price risies for the fourth straight day, sponsored by geopolitical risks stemming from the worsening Russia-Ukraine war. US data and Fedspeak are next in focus.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu (SHIB) trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Why Nvidia’s story is far from over
Nvidia delivers another earnings beat: Nvidia exceeded expectations with $35.08 billion in revenue, a 94% year-over-year increase, driven by strong performance in its data center business, which more than doubled to $30.8 billion.
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.