Countries Around the World Are Allocating Billions of Dollars to Support Economies. The British Pound Fell to a Low of 1985

March 19, 2020

by JustForex

The US dollar rose again relative to a basket of major currencies. The dollar index (#DX) closed in the positive zone (+1.74%). Countries around the world are developing measures to support economies that have suffered from the coronavirus pandemic. Thus, the US Senate has approved a bill to allocate billions of dollars to conduct free tests, pay sick leave and expand social insurance. Canada, in turn, published a massive stimulus package $82 billion worth in an attempt to cushion the blow from oil prices falling and the coronavirus pandemic. The Japanese government also discussed a package of measures that would include cash payments, and Germany decided to reduce the requirements for insurance capital stocks.

On Wednesday, the British pound fell to its lowest level against the dollar since 1985, and to more than a ten-year low against the euro due to concerns about coronavirus. During the Asian trading session, the Reserve Bank of Australia has lowered interest rates for the second time in a month, joining global central banks. The RBA urgently cut the rate to a record low of 0.25% and announced that it would not tighten its policy until it reached inflation targets.

The “black gold” prices have collapsed again. US senators have stepped up pressure on Saudi Arabia and Russia in order to stop the price war, which caused the collapse. Currently, futures for the WTI crude oil are testing the $23.55 mark per barrel.

Market indicators

Yesterday, there were aggressive sales in the US stock market: #SPY (-5.06%), #DIA (-6.60%), #QQQ (-3.04%).

The 10-year US government bonds yield rose slightly. At the moment, the indicator is at the level of 1.16-1.17%.


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The news feed on 2020.03.19:
  • – Initial jobless claims in the US at 14:30 (GMT+2:00);
  • – Philadelphia Fed manufacturing index at 14:30 (GMT+2:00).

by JustForex