News

Dollar Slips ahead of Jobless Claims

USD

The dollar index, which measures the greenback against a basket of major currencies, extended losses dropping to 100.50. Market participants are looking forward to the weekly jobless claims that will be released today, as they expect a massive rise as companies lay off workers due to the coronavirus outbreak. The dollar weakness pushed the demand for the Euro and the pound, where the EURUSD rose to 1.0939, and the GBPUSD recovered to $1.1960

Equities

Major US stock-index futures drifted lower during the Asian session as the expected rise in jobless claims eclipsed the $2 trillion stimulus bill. The senates backed the coronavirus stimulus bill that aims at helping unemployed people and industries disrupted by the virus outbreak. However, there are indications that some states will need more support. The Dow Jones Industrial Average futures dropped to 20618, the S&P500 futures dipped to 2411, and Nasdaq futures declined to 7320. Also, in Europe, the stimulus failed to ease the virus anxiety where DAX futures surrendered partial gains falling to 9526, and FTSE plunged to 5434.

Metals

Gold prices fell for the second consecutive day as investors' rush-to-cash continued. The spot price of a gold ounce fell to $1590, and gold futures dipped to $1611. Meanwhile, the price of a silver ounce hovered near $14.40, while palladium futures eased to $2108 after hitting a two-week high of $2319.

Oil

Oil prices continued to trade in a tight range awaiting fresh drivers. Yesterday, the Trump administration announced that the US could intervene to ease the Saudi oil production surge via G-20. The suspended economic activity around the world weakened the demand outlook. On the other hand, the US Energy Information Administration reported a buildup of 1.623 million barrels in US inventories last week. The West Texas Intermediate crude futures dipped to $23.40, and Brent futures declined to $26.23.

Major Economic Events

GMT Country Event Expectation Previous

12:00

UK

 BoE Interest Rate Decision (Mar)

0.10%

0.10%

12:00

UK

BoE QE Total (Mar)

645

645

12:30

US

GDP (QoQ) (Q4)

2.1%

2.1%

12:30

US

Initial Jobless Claims

1000

281

Disclaimer 

The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM.COM. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.

CFDs and Spot FX are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.03% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs and Spot FX work, and whether you can afford to take the high risk of losing your money. Read More
Read More
Mail Call Chat