Oil, closed ineffectively last week.
The reasons are obviously due to the OPEC oil war, the outbreak of coronavirus pandemic, a sharp deterioration in forecasts for the European economy, and now the United States. One of the voting members of the Fed said that the unemployment rate could reach 30%, which is quite a gigantic figure, the same as what happened during the Great Depression of 1929. I personally think that this is a clear exaggeration.
In Russia, the Moscow mayor imposed a quarantine for older people over 65 and suffering from chronic diseases as well as a curfew starting from March 26 to April 14.
The coronavirus pandemic continues to spread at high speed, despite quarantine measures which somehow seems insufficient due to late implementation of the quarantine by the administration.
Italy, on the other hand, has already reached to 59,000 cases. Followed by the USA with 35,000 reported patients, and then Spain with 29,000 reported cases and Germany with 25,000.
What will the markets do? The fall will continue. Markets will be under a negative pressure until they see clear signs of a slowing epidemic in the current main foci which is in Europe and the United States.
EURUSD: Prepare to sell from 1.0940.
