The OPEC meeting and the US Nonfarm Payrolls rocked the market last week. The market is torn between optimism about the global economic recovery and concerns about the new coronavirus strains.
Common currency rebounds from 21-month minimums
On Friday, the common currency is trying to revive following Thursday’s battering right after the ECB downgraded its surge estimates and failed to persuade financial markets with its initiative for stabilizing the EU economy.
Financial analysts told that notwithstanding the fact the EU’s major financial institution had attempted to get ‘ahead of the game’ with its announcement, but the ECB had only managed to draw attention to the lack of progress in the EU at addressing its structural and institutional flaws.
As a matter of fact, the common currency was worth $1.1206, adding 0.3% from the two-year minimum it reached after ECB Governor Mario Draghi’s press conference. Overnight, it had reached a minimum of $1.1175 that appears to be its lowest outcome versus the evergreen buck for two years.
The common currency also tumbled versus the UK pound notwithstanding a flurry of downbeat headlines around Brexit that generally tend to impact the UK currency.
Tracking the purchasing power of the US currency versus a number of its primary counterparts the USD index was worth 97.428, diving from an overnight peak of 97.595, that turned out to be its highest value since May 2017.
The ECB’s estimate validated market worries of a global economic deceleration, and they were further underpinned by data overnight disclosing a steep dive in China’s exports in January.
Financial markets will look to the monthly American payrolls report just to make sure that all three leading economic blocs aren’t struggling now. Moreover, market participants are also waiting for January data on industrial output from three of the biggest four Eurozone economies – Spain, Italy, and France, while Germany is going to uncover manufacturing orders data for the same month.
This week Apple, Microsoft, Google, Facebook, Pfizer, and other large US companies will deliver earnings reports…
The overall market sentiment is risk-on. The S&P 500 index (US 500) is getting close to the all-time high. Oil is recovering quickly from its recent losses.
What will happen? The FOMC statement will be published at 21:00 MT (GMT+3) on Wednesday, July 28…