Apr 9, 2020, 8:47:59 AM

Morning Market Review


Today, during the Asian session, the EUR/USD pair is growing slightly, continuing to develop the “bullish” momentum formed on Tuesday. Yesterday, EUR declined due to the failure of the Eurogroup negotiations, which lasted more than 15 hours. Initially, the meeting was supposed to agree on a new package of measures to support the European economy of more than 500 billion euros but due to several disagreements, a consensus was not reached. However, the Eurogroup intends to continue its negotiations on Thursday, so investors still hope for a positive outcome. Also, today, traders are focused on the ECB Meeting Minutes release. There will be few key macroeconomic statistics from Europe. The February data on import and export of Germany, as well as the February statistics on the dynamics of industrial production in Italy, deserve the most attention. More important are US Initial Jobless Claims data, which last week rose sharply to 6648K.


Today, during the Asian session, the GBP/USD pair is trading ambiguously, remaining around the ​​local highs since April 2. GBP is supported by a moderate increase in investor interest in risk against the background of some stabilization of the dynamics of coronavirus spread in Europe and the United States. However, investors are extremely cautious, fearing new outbreaks and evaluating the negative economic consequences that are only now beginning to be seen. On Thursday, traders are focused on a block of statistics on industrial production and the dynamics of the UK GDP in February. Also, the National Institute for Economic and Social Research of the United Kingdom will publish estimates of the country's GDP growth rates for March.


Today, during the Asian session, the NZD/USD pair is growing moderately, trading near the local highs since March 31. NZD is strengthening due to the development of USD correction dynamics, which is slightly weakening due to improved investor sentiment in the market. The statistics of incidence in Europe suggest that the epidemic has reached its peak, and soon, a gradual easing of several restrictive measures may be expected. Some stabilization was outlined in New York, which was hit hardest by the US epidemic. There it is too early to talk about reaching a peak but the general trend is positive. More confident growth in the New Zealand dollar is hindered by the publication of disappointing macroeconomic statistics from New Zealand. So, Electronic Card Retail Sales in March decreased by 3.9% MoM after an increase by 0.5% MoM in the previous month. Analysts had expected positive dynamics of +0.3% MoM. Also, the indicator fell from +8.6% YoY to -1.8% YoY against the forecast of +5.3% YoY.


Today, during the Asian session, the USD/JPY pair is growing moderately, recovering from a pullback on Tuesday. Now, the US currency is trying to consolidate above 109.00 supported by high demand for shelter assets. In turn, the position of the Japanese yen remains under pressure due to the emergency regime introduced recently in Tokyo and several prefectures surrounding it in response to the accelerated spread of the epidemic within the country. Macroeconomic statistics published on Thursday from Japan remains in the background and does not significantly affect the dynamics of the instrument. Thus, the volume of foreign investment in Japanese stocks for the week of April 3 increased by 422.7 billion yen after a decrease of 1,422.1 billion yen in the previous period. In turn, investment in foreign bonds for the same period fell sharply by 1,056.4 billion yen after an increase of 2.5 billion yen in the previous period.


Today, during the Asian session, gold prices are recovering, partially compensating for the decline on Tuesday and Wednesday, when the instrument retreated from its local highs since March 10. The instrument is still supported by an uncertain perspective around the coronavirus epidemic. The market is receiving signals that the epidemic may have reached its peak in Europe but investors are afraid to make hasty conclusions. The situation in the United States remains difficult, although the stabilization of new cases of infection has been outlined in New York. Also, investors are awaiting the outcome of today's OPEC+ meeting, which will be held remotely.

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