Welcome to this week’s Market Blast Fundamentals where we will look at GBPJPY, USDNOK, USDMXN, USDCAD, US Oil (WTI), UK Oil (Brent Crude), and the S&P 500 (US500).
News of a flattening of the curve on new Coronavirus deaths has helped global stock indices this morning and we can only hope for some more good news.
Both Brent Crude and WTI opened with a weekend gap but we may fill that gap, and more if oil-producing countries can agree on production cuts.
There will be an online meeting this Thursday between OPEC nations, Russia, the US, Canada, Mexico, Norway and perhaps others so watch for volatility.
This will also affect the currencies of the various oil-producing nations such as Canada where we have seen weakness since February.
USDMXN has reached record highs due to the Crude Oil price war and the effects of Coronavirus.
The Mexican government may have to borrow massively to stabilize the economy which will affect the currency as well.
USDNOK still has room to recover and the OPEC + meetings will help as well.
We see Sterling pairs consolidating and, as always, keep an eye on the economic calendar with Thursday’s UK Manufacturing and GDP figures, and Canadian Employment Change figures on Thursday, among others.
That’s all for now. Happy trading with Valutrades and we will see you tomorrow.
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