by JustForex
On Friday, the US dollar fell slightly against a basket of major currencies. The US dollar index (#DX) closed in the negative zone (-0.10). Yesterday, US Secretary of the Treasury, Steven Mnuchin, said the country’s economy would recover closer to July, August, or September when the work of the still closed enterprises would resume. According to the forecast of the Congressional Budget Office, a sharp contraction of the economy is expected this quarter, and the growth by 17% is expected in the second half of the year.
Thierry Breton, the European Commissioner for Internal Market, said that due to the coronavirus pandemic, EU GDP could decline by 7.5%. However, if the situation does not improve and the second peak of the pandemic is observed, then the reduction may be even higher. Meanwhile, Italy is beginning to phase out strict quarantine. So, from May 4, it is planned to resume the work of factories, construction, and some wholesale companies, and residents will be allowed to visit relatives. According to the plan, restaurants and bars will open in early June.
According to the National Health Commission of the PRC, there are no new cases of COVID-19 infection and deaths in the Chinese province of Hubei and the city of Wuhan, which is considered the epicenter of the infection spread. Yesterday, the last 12 patients were discharged from hospitals. Today nobody has been identified with suspected infection.
The Japanese yen has been growing after the Bank of Japan lifted restrictions on the purchase of government bonds and increased the purchase of corporate debt to help companies that were hit by the economic crisis. The regulator also has expanded incentive measures to support the financing of companies and government spending to fight the economic consequences of the coronavirus pandemic. The key interest rate remained unchanged at -0.10% per annum.
The “black gold” prices continue to decline. Currently, futures for the WTI crude oil are testing the $14.45 mark per barrel.
Free Reports:
On Friday, there was the bullish sentiment in the US stock market: #SPY (+1.93%), #DIA (+1.17%), #QQQ (+1.58%).
The 10-year US government bonds yield has not changed a lot. At the moment, the indicator is at the level of 0.62-0.63%.
by JustForex