Brazil Services Sector Shrinks At Record Pace On Covid-19 Disruption

Brazil’s service sector shrunk at the fastest pace in the survey’s 13-year history in March as businesses were shut and demand shrunk due to the coronavirus, or Covid-19, outbreak, survey data from IHS Markit showed on Friday. The headline seasonally adjusted IHS Markit Brazil Services Business Activity Index plummeted by nearly 16 points to 34.5 from 50.4 in February. A reading below 50 suggests contraction in activity. New work fell at the fastest pace since the survey began in March 2007, thanks to cancelled orders and business shutdowns. Export demand dropped at a rapid rate that exceeded the fall in total demand, mainly due to containment measures adopted globally to slow the spread of the Covid-19 pandemic. Employment fell at the fastest rate since October 2016, as businesses shed jobs in a bid to reduce operating costs amid shutdowns. Average costs increased sharply in March, but the overall rate of input price inflation was the slowest since last November. A strong US dollar and a corresponding increase in the price of imported items, pushed up purchasing costs. Charge inflation remained modest, but was the fastest in three months. Business confidence eroded sharply with expectations being the weakest since the survey…

U.S. Dollar Higher Amid Coronavirus Fears

The U.S. dollar firmed against its major counterparts in the European session on Friday, as investors sought safe-haven assets following grim Eurozone business survey, as well as continued COVID-19 concerns after virus cases exceeded one million. The IHS Markit eurozone services purchasing managers index slumped to a reading of 26.4 in March from 52.6 in February, the worst-ever reading in the history of the series, as the covid-19 pandemic and associated measures taken to contain the outbreak through Europe weighed heavily on business performance. The number of confirmed coronavirus cases crossed the 1 million mark globally with a death toll of 53,030, according to the new tally from Johns Hopkins University. Around 1,015,403 people have been diagnosed with the novel coronavirus across the world. Investors didn’t react to the disappointing U.S. jobs data for March. Data from the Labor Department showed that the U.S. employment fell much more than expected in the month of March. The report said employment plunged by 701,000 jobs in March after jumping by an upwardly revised 275,000 jobs in February. Economists had expected employment to slump by 100,000 jobs compared to the addition of 273,000 jobs originally reported for the previous month. With the much…

U.S. Employment Plunges By 701,000 Jobs In March, Much More Than Expected

Employment in the U.S. fell much more than expected in the month of March, according to a report released by the Labor Department on Friday. The report said employment plunged by 701,000 jobs in March after jumping by an upwardly revised 275,000 jobs in February. Economists had expected employment to slump by 100,000 jobs compared to the addition of 273,000 jobs originally reported for the previous month. The much bigger than expected decrease came as employment in the leisure and hospitality sector plummeted by 459,000 jobs, mainly in food services and drinking places. The Labor Department said notable declines also occurred in health care and social assistance, professional and business services, retail trade, and construction. With the much bigger than expected drop in employment, the unemployment rate surged up to 4.4 percent in March from 3.5 percent in February. The unemployment rate had been expected to climb to 3.8 percent. “The 701,000 plunge in non-farm payrolls in March, which is already close to the worst monthly declines seen during the Global Financial Crisis, suggests the coronavirus pandemic started to decimate economic activity even sooner than we had thought,” said Andrew Hunter, Senior U.S. Economist at Capital Economics. He…

U.S. Employment Plunges Much More Than Expected In March

Employment in the U.S. fell much more than expected in the month of March, according to a report released by the Labor Department on Friday. The report said employment plunged by 701,000 jobs in March after jumping by an upwardly revised 275,000 jobs in February. Economists had expected employment to slump by 100,000 jobs compared to the addition of 273,000 jobs originally reported for the previous month. With the much bigger than expected drop in employment, the unemployment rate surged up to 4.4 percent in March from 3.5 percent in February. The unemployment rate had been expected to climb to 3.8 percent. The material has been provided by InstaForex Company – www.instaforex.com…

S&P Affirms Japan's Sovereign Ratings

S&P Global Ratings affirmed sovereign ratings of Japan as the fallout from economic shocks are expected to be temporary. The rating agency said the coronavirus or covid-19 outbreak has set back Japan’s fiscal stabilization process but it is expected to get back on track in the next one to two years as the economy recovers. The rating agency said the ‘A+’ rating reflects Japan’s exceptional external position, prosperous and diversified economy, political stability, and savings-rich financial system. The positive outlook indicates that Japan will return to a fiscal trajectory that stabilizes or improves its government debt level relative to GDP. Due to the sales tax hike in October 2019 and covid-19 outbreak, the economy is set to see marginal contraction in two consecutive fiscal years. Although the real GDP growth will rebound in fiscal 2021 to above 2 percent, the ongoing slowdown will take some wind out of current robust labor market conditions, S&P said. The material has been provided by InstaForex Company – www.instaforex.com…

Dollar Rises Vs Most Majors Ahead Of U.S. Jobs Data

At 8:30 am ET Friday, the Labor Department will release U.S. nonfarm payrolls data for March. Ahead of the data, the greenback traded mixed against its major counterparts. While the currency held steady against the pound, it advanced against the rest of major rivals. The greenback was worth 108.46 against the yen, 0.9774 against the franc, 1.2281 against the pound and 1.0792 against the euro as of 8:25 am ET. The material has been provided by InstaForex Company – www.instaforex.com…

Comprehensive analysis of movement options of AUD/USD, USD/CAD, and NZD/USD (daily) in April 2020. The analysis of the APLs

Minor operational scale (daily time frame)
In the second month of spring – what will happen with the “raw” currencies AUD/USD, USD/CAD, and NZD/USD? Overview of the development of the traffic movement from April 4, 2020.____________________
Australian Dollar vs US Dollar
Testing and direction of the range breakdown:
resistance level of 0.6100 – median line minute;support level of 0.6000 – the upper border of the channel 1/2 median line fork operational scale minuteIt will determine the development of the movement of the Australian dollar AUD/USD from April 4, 2020.
Sequential breakdown of support levels:
0.6000 – upper limit of the channel 1/2ML minute;0.5965 – lower bound of ISL61.8 equilibrium zone of the forks of the operational scale minor;0.5930 – lower bound of ISL61. 8 equilibrium zone of the forks of the operational scale minute;Confirm the development of the movement of the Australian dollar in the channel 1/2 median line minute (0.6000 – 0.5860 – 0.5730) with the prospect of reaching the minimum price of 0.5510.
When sharing the breakdown of the median lines (resistance of 0.6100) and median line minor (0.6130) – option of the movement AUD/USD to the upper limit of ISL61.8 (0.6240) zone equilibrium fork operational scale minute and channel borders 1/2 median line (0.6275 -…