Investors rejoiced after the news that US Senators had approved a $2 trillion stimulus package. Market sentiment significantly improved, risk sentiment is still subdued though. Traders remain cautious as they fear that the global economy may slide into a recession due to the coronavirus pandemic. The outbreak has already caused a drop in demand for energy resources and the price war between the largest oil producers. Today, the Group of 20 will hold an emergency online summit. Saudi Arabia will preside over the G20 this
year. During the teleconference, the world leaders will discuss measures against the spread of coronavirus and the collapse of oil prices. Against such a background, the US dollar halted its downward movement near the 100.60 level. However, in the first hours of the work of European traders, it started falling again. The greenback went below the level of 100.50. Traders are also nervous awaiting today’s report on US initial jobless claims. Economists forecast that claims for unemployment benefits are on track to increase by more than a million, surpassing the peak value of the last global financial crisis. Versus the yen, the US dollar looks less attractive. The Japanese currency as a more reliable safe-haven asset is the strongest currency in the pair. The risk-off sentiment intensified after reports that the number of infected people exceeded 500,000. The dollar/yen pair sank below 110.00. Judging by the signals of technical analysis indicators, the pair is likely to decline to the support level at 109.24. If it breaks through this level, it will tumble to 107.85. At the same time, the greenback is also losing ground against the Australian dollar as traders seem reluctant to buy the US currency. Besides, speculators are poised for gloomy data on the initial unemployment claims. The AUD/USD pair is hovering in a wide range at the level of 0.5960. Technical analysis experts predict that the pair will reverse downwards to the long-term level at 0.5395. Given the current uncertainty, it is better to refrain from opening long deals on the pair. However, those who are willing to take a risk may open short deals when the chart moves up. That’s all for now. We wish you profitable deals! See you on our channel with a new video in a couple of hours!