Forex Today: World Stock Markets Stabilized

Adam Lemon

Get the latest Forex and market news around the world for Tuesday, March 31, 2020 here.

- The global coronavirus pandemic continues to increase exponentially from its epicenter in Europe and the U.S.A, with 40% of the world’s population now under lockdown 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 and other analysts seeing a 30% unemployment rate in the near future. If correct, these will be the worst such numbers since the 1930s.

- The rate of increase in fatalities and new confirmed cases is now declining in hard-hit Europe, especially in Italy, providing hope that lockdowns are beginning to show results. However, the daily death toll in Europe is not falling yet.

- The strongest growth of the virus in the world now is happening in New York City and New York State, with the U.S.A. now leading the world in number of confirmed cases. In Europe, the United Kingdom and France appear statistically to be on course for an Italian-style outcome, with Spain heading for something even worse.

- World stock markets, especially in the U.S.A., seem to have stabilized on confirmation of the passage of a $2 billion rescue package by the U.S. Congress. However, many analysts believe that stock markets remain prone to further sharp sell-offs ahead. The Japanese stock market closed down on a pessimistic World Bank report on the impact of coronavirus in Asia.

- WTI Crude Oil has recovered from its 18-year low to again trade above $20, but it still looks weak.

- Currency markets appear to be consolidating and showing no clear direction today.

- Markets are affected by high relative volatility, although it is decreasing. 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 what month-end price movements we see today in stock markets. The U.S. CB Consumer Confidence data due later will give some window into the state of consumer demand in the U.S.A.

About the Author
Adam Lemon

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

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