The U.S. Dollar is trading in within a 1.0% range against most currencies, swinging as a new month starts in which there is hope of a less restrictive life.
Overview
Italy, Portugal, and Belgium have some people going back to work as the continent begins to gradually open. On the domestic front, states are figuring out how to best approach the idea of allowing use of public areas and return of gyms and others places of gathering. The devastation of inactivity has arrived in the form of historic contractions to Gross Domestic Product and overall consumption. Joblessness is particularly shocking, which has pushed some into protests of the quarantine. With uncertainty weighing heavy, expect these moods for ever-changing fluctuations until we get some clarity.
We will get a look into Factory Orders for the month of March at 10AM, but most will eagerly await all week for the Employment Situation to be of most impact. One major development in this crisis has been the realization that we need to better gauge and assess real-time data to better keep up with the full effects of the virus on the economy. ADP Employment might be an imperative preamble this time around when it is released on Wednesday.
What to Watch Today…
- Factory Orders 10AM
Complete Economic Calendar can be found here.
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EUR
The Euro moved modestly higher late yesterday and early evening on the tail of an increasingly dovish Federal Reserve in the U.S. The Euro hit the brakes a bit after a solid few day of gains that made its value the highest against the greenback in over two weeks. Rescuing industries is now a major point of government work in the ancient continent, but air and tourism have taken priority over the hurting business of betting. Without the spectacle of major sports leagues, firms are trying to figure a way to prop revenue in an industry that also feeds into other sectors of the economy. As stated previously, we do believe that when sports can make a comeback, this will be a major fuel to all else and allow for better guidance. The confidence of major entities that unify people will be the light.
MXN
In general, this section can sum up the inconsistencies at the moment for a variety of currencies, primarily those like “Aussie dependent on a positive world outlook. China’s return to normalcy has been reported as very difficult, which has translated into risk-on/risk-off rapidly for equities and orders. These currencies such as MXN, AUD, NZD, NOK, and SEK are frustrated by the lack of optimism surrounding the energy sector. If China is not moving healthy and the U.S, remains partially shut, the buck may not establish neither dominance nor a loss until data, as well as testing, aids us in forging out a future beyond COVID.
