FxPro Daily Insight for April 20

Market overview

Futures for S&P500 losing 2.1% on Monday, almost fully gave back growth on Friday (+2.7%). Investors are concerned about the deterioration in the economy against the backdrop of quarantine. Particularly frightening is the failure of oil. The VIX volatility index has returned to levels above 40. DAX is losing 1.5%, CAC40 -1.1%, and FTSE100 is near zero.

DXY regained 0.3% from the start of the day, rising above 100.0. NZD adds on quarantine mitigation plans. Oil-linked NOK, CAD are lagging on the back of the collapse in Crude prices. Within the day, GBPUSD slid to 1.24 – last week’s lows, with EURUSD fluctuations centred around 1.0850.

Gold at the beginning of the day fell to $1673, rebounded to $1685 at the time of writing.

Brent sank below $29 on increasing concern about stocks and supply. May futures for the American WTI fell to $ 11 (-40% intraday).

The attention of the markets switches to how sustainable the financial system will be, whether already announced measures will be sufficient.

Important events for April 21, GMT (Exp.): 06:00 UK !!! Claimant Count Change (Mar, +21K) 09:00 Ge !! ZEW Economic Sentiment (Apr, -40) 14:00 US !! Existing Home Sales (Mar, -8.2%)