Forex Today: Mild Recovery in Stocks


Here are the latest Forex and market news around the globe for March 24, 2020.

- The global coronavirus pandemic continues to spread exponentially within Europe and from its epicenter in Europe, with more and more countries imposing lockdowns and restrictions which are causing very significant economic damage. A global recession appears to be inevitable, with Goldman Sachs forecasting a 23% drop in U.S. GDP.

- Stringent restrictions continue to be imposed in Europe and the U.S.A., with the U.K. imposing a near-total lockdown yesterday enforced by law.

- Fatalities in most European countries are increasing, but Italy has seen a lower number of daily deaths for the last two days, providing some hope that the lockdown is beginning to show results. Confirmed cases in the U.S.A. now put it 3rd behind only China and Italy in number of confirmed cases.

- The U.S. stock market’s major index, the S&P 500, declined again yesterday. However, recent hours have seen a mild recovery in stocks and risky assets generally, with the U.S. Dollar finally pulling back a little. 

- The stock exchanges in France, Italy and Spain have banned short selling.

Stock markets are crashing

- Commodities (especially Crude Oil) and the British Pound are relatively weak. The U.S. Dollar is generally the strongest currency. However, today looks like making a counter-trend move, which is likely to be short-term only.

- The Australian Dollar, the British Pound, WTI Crude Oil and Silver have all hit multi-year lows last week.

- The dominant theme in markets is very high directional volatility, and plummeting consumer demand. This provides opportunities for traders, but close monitoring of trades on short time frames is very advisable due to the strength and speed of price movements.

- The key factor in markets today will likely be how the U.S. Treasury and Administration continue to tackle the crisis, with enormous pressure building to take very drastic lockdown measures to save not only health but the economy. The U.S. Senate and Administration are currently arguing over a mooted $2 trillion stimulus / bailout package which has yet to be agreed, as New York City goes into lockdown measures.

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.
Learn more from Adam in his free lessons at FX Academy