Forex Today: Covid-19 Dominates The Market

The markets were optimistic after headlines from China which gave optimism to share, the rise of Asian shares, in turn, raised the S&P 500, which affects USD and the safe haven. Coronavirus cases continue to increase at an alarming rate in US.

US: GS is not optimistic about the US economy and has revised its GDP growth forecasts to a 4.6% contraction this year, this is attributed to the increase in coronavirus cases with lower consumption

 ISM Non-Manufacturing Purchasing Managers’ Index, is awaited today and is expected to show a recovery in the services sector. NFP showed an increase of 4.7 M jobs

Europe: Spain imposed a second domestic lockdown to control Covid-19 outbreak, and European Central Bank President Christine Lagarde said that Eurozone faces two years of inflation and pledged to support the region’s economy

UK: Bank of England Governor Andrew Pelly has sent a letter asking commercial banks to prepare for negative interest rates, according to the Sunday Times. The country had reopened the economy after the lockdown due to Coruna.

Oil prices benefit from optimism, as WTI traded above $ 40. Gold is also fixed above $ 1770.