Tag Archives: foreign exchange markets

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…

EUR/USD evening review for April 03, 2020. Market stuck in the range, to wait for the US state on Monday

Them US employment report for March was released which showed less than 700 thousand jobs and an increase in the unemployment rate from 3.8% to 4.5%.In the past years, Eureka would either soar up or drop-down, but now it stands still.The data from March serves as a recollection of the Tatar invasion. Over the past two weeks, the number of new unemployment benefits in the United States amounted to almost 10 million.The US administration pays huge sums of money to businesses and households in the midst of the pandemic, after all, there are almost 250,000 infected in the United States.In Moscow, Russia the number of infected cases is still at 3,500 which is so far an exponential increase, and the quarantine is still to last until April 30th. Amid this quarantine, the Russian authorities do not propose to pay people who find themselves in FORCED non-working condition.This was directly stated by Sobyanin, the mayor of Moscow, saying that, “The budget will not stand. We believe that the business has enough money to pay a month of vacation to employees.”Germany, on the other hand, paid their forced “vacationers” employees at about 3 Salaries. That is without any inquiries, just on request and…

Eurozone Private Sector Logs Record Fall In March

The euro area private sector logged its biggest monthly fall on record in March as the coronavirus disease, or covid-19, pandemic impacted heavily on economic activity, final data from IHS Markit showed Friday. The final composite output index fell sharply to 29.7 in March from 51.6 in February. This was also weaker than the flash estimate of 31.4. Both services and manufacturing sectors recorded notable declines in output in March. Manufacturers posted the sharpest fall in production since April 2009. At the same time, services activity declined at a record pace. The final services Purchasing Managers’ Index plunged to a record low of 26.4 from 52.6 a month ago. The reading was also below the preliminary estimate of 28.4. The covid-19 pandemic and associated measures taken to contain the outbreak through Europe weighed heavily on business performance. Chris Williamson, chief business economist at IHS Markit said, the data indicate that the eurozone economy is already contracting at an annualized rate approaching 10 percent, with worse inevitably to come in the near future. Incoming new work deteriorated to the greatest extent in the 22-year survey history. Further, confidence about the future was the lowest recorded by the survey since…

Japanese Yen Higher Amid Rising Risk Aversion

The Japanese yen climbed against its major counterparts in the Asian session on Friday amid rising risk aversion, as oil prices retraced gains and a private survey showed that China’s services sector contracted further in March. Survey data from IHS Markit showed that China’s services activity contracted in March due to the impact of the COVID-19 outbreak on demand and supply chains. The Caixin services Purchasing Managers’ Index rose to 43.0 in March from 26.5 in February. However, a score below 50 indicates contraction. Oil prices fell after soaring on Thursday following President Donald Trump’s comment that he expects Russia and Saudi Arabia to co-operate on output reduction. The United States reported a record 6.648 million jobless claims last week led by shut downs to contain the virus. Investors await the March payroll data due at 8:30 am ET. Economists are expecting a drop of 100,000 jobs last month, while the unemployment rate is seen rising to 3.8 percent. 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….

Analysis of AUD/USD on April 3, 2020

Hello, dear traders!
It’s time to consider the AUD/USD currency pair, the technical picture of which is quite interesting. But more on that later.
The Reserve Bank of Australia (RBA), along with other leading global central banks, announced the introduction of temporary swaps in the US currency in order to increase liquidity. In addition, the RBA together with the Australian government decided to allocate about 100 billion Australian dollars to support the Australian economy.
Let’s look at the technical picture for the AUD/USD currency pair, and since this tool is analyzed once a week, let’s start with the corresponding timeframe.
Weekly

After falling to the level of 0.5510, the pair began to adjust from the previous fairly strong and prolonged decline. Attempts to continue to recover losses in the current five-day trading failed at the level of 0.6215, from where the pair again turned in the south direction.
In fairness, it should be noted that the results of weekly trading will be determined by data on the US labor market, which will be published at 13:30 (London time). Economists’ forecasts are very pessimistic, and if the actual numbers turn out to be even worse than expected, the US currency risks falling under a wave of sales.
The current…

Instaforex Daily Analysis – 3rd April 2020

Today we take a look at Gold and see how we are going to play the bounce!We use Fibonacci retracements, extensions, support/resistance, momentum and trend lines to identify trading opportunities in this exciting pair today!The material has been provided by InstaForex Company – www.instaforex.com…

EUR/USD. April 3. 1 million cases of COVID-2019 virus in the world. The euro is preparing for a new fall. The trader is waiting

EUR/USD – 1H.

Hello, traders! According to the hourly chart, everything goes according to plan. The new downward trend line clearly indicates the “bearish” mood of most traders. Thus, it will be possible to sell the pair until the quotes close above this very trend line. In general, the EUR/USD pair continues the process of falling on April 3. News coming from various parts of the world remains disappointing. The COVID-2019 virus continues to spread, and today the official number of infected people around the world has exceeded 1,000,000. Most of the sick citizens are in America, but this does not make any negative impression on the American currency. Also yesterday, traders were very happy to miss the important economic report from the US on unemployment…
EUR/USD – 4H.

On the 4-hour chart, the EUR/USD pair performed a rebound from the corrective level of 38.2% (1.0964) and a reversal in favor of the US dollar with the resumption of falling quotes. As a result, at the moment, traders have worked out the Fibo level of 23.6% (1.0840) and now either there will be a rebound from this level or closure under it. In the first case, a reversal will be made in favor of…

Hong Kong PMI Inches Higher In March – IHS Markit

Hong Kong’s private sector economy continued to contract in March, albeit at a slightly slower pace, the latest survey from IHS Markit showed on Friday with a PMI score of 34.9. That’s up from 33.1 in February although it remains well beneath the boom-or-bust line of 50 that separates expansion from contraction. Individually, new orders and exports both continued to fall sharply last month. Delivery times lengthened at the fastest rate in survey history, while job shedding accelerated as backlogs fell at a record rate. The material has been provided by InstaForex Company – www.instaforex.com…