ActivTrades’ Market Analysts prepared their daily commentary on traditional markets for April 23, 2020. This is not a trading advice. See details below:
FOREX
The euro is losing ground to all other major currencies during early Thursday trading following the publication of concerning data for Germany, the single currency’s largest economy. The Markit composite PMI, which measures manufacturing and services activity, plunged from 35 points to 17.1, shocking markets with a figure that came in way below market expectations. The plunge in economic activity from the powerhouse of Europe illustrates the scale of the recession sparked by the coronavirus fallout; euro traders should fasten their seatbelts.
Ricardo Evangelista – Senior Analyst, ActivTrades
OIL
The storm for oil isn’t over but at least for the time being it is less volatile than the headline-grabbing moves of the last few days. It is clear that any additional cut by OPEC would only be a temporary solution and not a definitive one. Moreover, many producers will struggle with further cuts, even if this seems to be the only alternative to ultra-low prices. On a separate note, once we get closer to the next expiry, it is entirely possible for prices to go negative again as long as the tanks remain full leaving no home for the oil that needs to be delivered.
Carlo Alberto De Casa – Chief analyst, ActivTrades
