Futures for US indices add about 1% on Thursday after 4.4% drop on Wednesday. The careful optimism on markets from the slowdown in the growth of new virus cases is balancing with gloomy expectations of the impact of quarantine on the labour market.

DXY develop its growth this week. EURUSD fell below 1.0900 on reports of soaring unemployment in the euro-region. GBPUSD, however, has managed to stay afloat today. The volatility of the foreign exchange market continues to decline, giving way to the formation of long-term trends.

Gold rose to $ 1,605 in response to a shift in sentiment in commodity markets.

Brent is adding 6% to $ 27.7 in the spot markets today. Reports of Saudi Arabia’s preparedness to discuss Oil market balance measures caused a 13% jump in quotes in less than 12 hours to $ 28.5. Lately the price eased somewhat.

Investors are waiting for signs of stabilization in the number of infected as the first starting point for further assessing the prospects for the economy and markets.

With increased volumes, is crypto ready for growth?

Bitcoin climbed by 5% in the last 24 hours and is trading at around $6,650.

Traders at Coinbase have prepared for the market rebound in advance. Coinbase data showed a significant increase in trading activity and demand for the purchase of leading digital currencies immediately after the collapse of the crypto market on March 12. Traders bought the dips, which allowed the market to bounce back quickly, but a full-scale reversal required much larger volumes.

https://fxpro.news/analysis-and-insight/with-increased-volumes-is-crypto-ready-for-growth-20200402/

#WaveAnalysis
#WTI reversed from key support level 20.00
Likely to rise to 25.00

https://fxpro.news/market-snapshots/wti-wave-analysis-02-april-2019-20200402/

Over the past day, the number of new infections in the world increased by 80.6K cases against 63.7K a week earlier (75.1K a day earlier). The total number of infected people exceeded 1 million. The stabilisation of the spreading speed in the US was not confirmed: 30.1K were detected per day with more than 50% increase to the pace of the previous week. In Europe, for the most part, the number of new infections has stabilised. If this trend confirms, it can be used as an example of the USA, assuming 10-14 days of exponential growth of new cases after the introduction of a strict isolation or quarantine regime before the situation stabilises.

Trump offers hope for oil and more

Brent gave some gains after spike on Thursday amid market doubts about a sharp decline in production.

Neverless, Brent trades 16% above Wednesday’s lows. The oil growth the day before brought stock indices back to growth, allowing investors to forget the pain of the US labour market.

Now it seems that stabilization and some oil bounce may well be the light at the end of the tunnel that markets need now. With a resilient financial system, economic recovery will go much faster.

https://fxpro.news/daily-economic-events/trump-offers-hope-for-oil-20200403/

#Bitcoin bounced to $7,100 and then declined to $6,800 by Friday morning. The growth took place amid help from growing trade volumes, which is an additional positive. Despite the price growth, the Crypto Fear & Greed Index stay at “extreme fear” levels

https://fxpro.news/analysis-and-insight/bit-comment-bitcoin-growing-amid-fear-20200403/

NFPs are set to release at 12:30 GMT with expectation to -100K after 113 months of job growth. But take note, this release based on data collected until March 12, before the much more stricter quarantine measures in the US and before the spike in the jobless claims.

According to Non-farm payrolls report for March, US lost 701K jobs (vs expected 100K). But according to weekly jobless claims, the worst is yet to come. Will it be so for the markets? Only time can tell.

US markets are losing about 0.7% on session start on Friday after rising 2.3% on Thursday. The data showed the economy losing 701K jobs. However, this report does not include the most recent two weeks, when cuts were most dramatic.

DXY has been adding 2.4% this week, returning half the decline in the previous five days. EURUSD slid under 1.0800 on speculation that political divisions would amplify the economic blow. GBPUSD went down. The FX volatility continues to decline, giving way to the longer-term trends.

Gold develops growth the second day, returning to the level of $1617 and having won back the decline at the beginning of the week.

Brent is trading at $33.7 in the spot market, adding 14% today. Expectations of unprecedented coordinated production cuts from OPEC, Russia and the US are supporting the growth.

Investors are waiting for signs of stabilization in the number of infected as the first starting point for further assessing the prospects for the economy and markets.

#WaveAnalysis
#EURJPY reversed from multi-month support level 116.20
Likely to rise to 118.00

https://fxpro.news/market-snapshots/eurjpy-wave-analysis-03-april-2019-20200403/

#WaveAnalysis
#GBPCAD reversed from resistance level 1.7770
Likely to fall to 1.7200

https://fxpro.news/market-snapshots/gbpcad-wave-analysis-03-april-2019-20200403/

The job’s report looks terrible only against its own series background. This was the first decline after about 10 years of continuous gains (113 months). But markets quickly dismissed this data, which did not take into account the dramatic shift in the labor market landscape in the previous two weeks, when the number of initial jobless claims soared almost 12x to 3.28M, and last week doubled to 6.6M.

On the whole, the foreign market reacted rather apathetically to the report, maintaining the trends of the last two days when the dollar regained its position. Earlier in March, the USD soared during huge market liquidation and great dollar thirst. Later, it lost about half of this growth on massive Fed liquidity injections. Now, it seems, a new phase in the dynamics of the markets is beginning: the markets will respond in accordance with the scale of economic losses from the coronavirus. The euro in this context looks like an outsider, and the pound is still relatively stable.

Over the past day, the number of new infections in the world grew by 74.7K cases against 59.4K a week earlier (101.5K a day earlier and 80.6K on Friday). This is not the first time a week has begun with hopes for stabilising the pace of distribution. In large European countries, there has been a decrease in the number of new infections. Although the number of newly detected cases remain close to the highs and mitigation is not yet discussed, forward-looking markets see this information as the first stabilisation signals. This is an occasion to think that the scale of the disaster will not expand, which reduces the volatility of markets.

Economists are catastrophically far from reality in their estimates, but markets do not notice this. The coronavirus data now looks like a more reliable economic indicator than the economical reports, which is noticeably lagging.

And there is early signs of improvement that pushes stocks higher on this Monday.

Besides, extreme monetary easing and unprecedented stimulus announced by major governments have allowed markets to soften the decline and move away from lows.

https://fxpro.news/daily-forex-outlook/markets-are-ignoring-the-economy-coronavirus-is-in-the-spotlight-20200406/

The crypto market followed the stock market up

Bitcoin and the overall crypto market started the week on a positive note. In the last 24 hours, the benchmark cryptocurrency has added almost 4% and managed to exceed $7K.

Probably, the purchases follow the signs of improving sentiment in the stock markets. As soon as risk assets start to attract demand actively, institutional investors may also increase their positions in the cryptocurrency.

https://fxpro.news/analysis-and-insight/the-crypto-market-followed-the-stock-market-up-20200406/

Futures for US indices added 3.5% before US session start on optimism around signs of slowing the spread of coronavirus. The German DAX growing 4.6% today, the CAC40 is up 3.4%, while the FTSE100 is up 2.2%.

The FX volatility continues to decline. DXY slightly added, slowing its upward move growth since last Friday. EURUSD got back below 1.08, failing to hold above this mark. GBPUSD won back the decline at the opening of the day after reports of the hospitalisation of the Prime Minister.

Gold jumped to $1640, the highs since March 12, as stabilisation of risky assets returns the demand for gold as insurance against capital depreciation.

Brent is trading at $ 33.7 in the spot market, starting the week with a 7% dip to $32.5 after reports of the postponement of OPEC + discussions from Monday to Thursday.

Investors hope to see confirmation of the stabilisation virus spreading, which may be the starting point for further assessing the prospects of the economy and markets.

#WaveAnalysis
#GBPAUD reversed from key resistance area
Likely to fall to 2.000

https://fxpro.news/market-snapshots/gbpaud-wave-analysis-06-april-2019-20200406/

#WaveAnalysis
#EURNZD broke support area
Likely to fall to 1.8000

https://fxpro.news/market-snapshots/eurnzd-wave-analysis-06-april-2019-20200406/

Over the past day, the number of new infections in the world has grown by 72.9K cases against 62.2K a week ago and 74.7K a day earlier. There is a flattening of the pace of distribution, which is positively perceived by market participants. In large European countries (except France and the UK) there is a tendency to reduce the number of new cases. In the UK, France and several Scandinavian countries, we see stabilisation so far, but not yet decline. Some reports say that Italy is considering the date of the softening of the quarantine regime. Forward-looking markets took this information as the first signals of stabilisation. It is time for investors to assess the economic impact.