COVID-19 numbers increase with the distressing rate in South America, and this pandemic situation is making the market’s mood sour. Other currencies are falling, but in contrast, the Dollar and gold have outstanding performance. A three-layered statement of US economic statistics and coronavirus data are compared.
US coronavirus:
The coronavirus is spreading to more states at a high rate, including Florida, Houston, and Arizona. Hospitals in Houston are about to touch full capacity of taking care of infected patients, and due to the high rate of spread, Arizona is unable to sustain with the pace of testing. People of New York want infected people who are coming from South America to quarantine. The death rate from the disease is increasing day by day after the constant fall.
Gloomy Forecasts:
International Monetary Fund relegates the forecasts, which are another factor affecting the stocks. The estimates are projecting a breakdown of 4.9% in 2020, and in 2021 the graph is making an L-shaped state in which it is showing no growth.
US Dollar is most prevalent in between all other currencies together with yen, and it is the primary beneficiary amongst all the currencies. In 7.5-year, gold prices are amalgamating their profits of around $1770. Oil and other currencies are falling together with Standard and Poor’s 500 and Asian stocks. David Solomon, Goldman Sachs’ CEO, indicated that most stocks are over-valued.
Top three events will happen with the US this year: In the first quarter of the year, the country’s Gross Domestic Product will probably face 5% annual shrinkage. Durable Goods Orders will fall in April and expected to recover in May.
For the ultimate economic figure, it is essential to watch weekly unemployment claims. It is crucial to continuing the allegations because they were for the same week when the Non-Farm Payrolls surveys conducted.
US Elections:
Democrat Joe Biden got a substantial lead in opinion polls besides President Donald Trump by 9% plus. Investors fear that democrats can do the clean sweep in elections. COVID-19 is everywhere in the headlines, and election news faces misfortune in the rival of the pandemic news.
EUR/USD:
Before the meeting minutes of European Central Banks for its June meeting about the lift of its bond-buying scheme, EUR/USD was soothing at the lower side. The level of apprehension about the economy and clarifying the move was relational, countering to the German constitutional court are eyed. Most of the European countries are facing a crisis due to the outbreak COVID-19, which looks like under control for now.
GBP/USD:
GBP/USD is not on the peaks but trading beyond 1.24. The UK government is facing high criticism of the handling of the COVID-19 crisis. Brexit might grasp the headlines before the recommencement of talks on Monday.
WTI Oil:
WTI oil traded on $37, at the lower side. An increase in commodities inventory can be risky for the economy. Commodity currencies also started to decline.
Cryptocurrencies:
Cryptocurrencies are in defensive positions and also facing a downfall. The Bitcoin is suspended around $9,100.
