Forex Today: Markets shrug off horrible US jobs data, Bitcoin tumbles ahead of halving, lockdowns eyed
Here is what you need to know on Monday, May 11:
The week has kicked off where it ended, with cautious optimism in stocks, a marginally weaker dollar and only oil prices are on the back foot. Bad news seems to be priced in.
Coronavirus: Total confirmed cases have surpassed four million cases, with figures falling in Europe but flare-ups reported in South Korea and a new cluster in Wuhan, China. US infections remain elevated outside the New York area.
America lost over 20 million jobs in April, within expectations, and the Unemployment Rate hit 14.7% as of mid-April, with employment losses reaching even the healthcare sector. The labor situation may get worse. The devastating figures were shrugged off by markets. Fresh consumer figures for April stand out later in the week.
See US Non-Farm Payrolls Quick Analysis: When the worst sends markets higher
President Donald Trump reiterated his urge to return to normal while the disease has reached the White House with several cases reported among staff. Vice President Mike Pence is working out of the White House.
Europe: France, Spain, and other countries are taking additional steps to ease the lockdowns as COVID-19 statistics improve across the continent. German's Reproductive rate (R) has topped 1 and caused some worried.
The European Commission is threatening to sue Germany over the country's constitutional court ruling that parts of the European Central Bank's bond-buying scheme is illegal. ECB President Christine Lagarde committed to doing whatever is necessary. EUR/USD is stable around 1.0850.
UK: Prime Minister Boris Johnson announced a minor easing of the lockdown with further steps to conditionally come in June and July. His message was criticized by various groups and more clarity may come later in the day. Brexit talks resume as the EU accuses Britain of slow-walking topics that matter to Brussels while urging progress on others. GBP/USD has stabilized.
The Australian and New Zealand dollars are edging up amid the upbeat mood while the Canadian dollar is little changed as crude prices tick down.
Cryptocurrencies: Bitcoin fell sharply over the weekend, nearing $8,000 before stabilizing above $8,500. Traders are awaiting the all-important "halving" event which will see new BTC produced at 50% of the previous rate.
Author
Yohay Elam
FXStreet
Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.
