The dollar is losing some of its midnight trading gains today as we observe mixed sentiment, with Asian markets looking for direction. US futures are still down, hitting the down limit for the session, and bond yields are also losing ground.
In Asia, investors have tried to recover some of their losses after adjusting Wall St to the back of hopes of fiscal stimulus in this aggravated situation.
Europe is expected to open today with slight declines, following the fall of US futures in the last hour. It’s still early in the day to draw any conclusions about the direction of cash flow during the session, so let’s see how liquidity will play its role with the start of Europe.
Although Western governments have pledged to market billions of dollars to help businesses and citizens cope with COVID-19, this is not enough to allay concerns.
In London, UKX will start 124 points down, CAC will lose 88 points, while DAX in Germany will lose 186 points.
Today, global markets will respond to promises of multi-billion dollar aid from governments.
In the words of D. Trump, “it will be big, it will be bold.”
Economic reports for the next day remain in the background, expecting nothing but headlines related to the virus, risk movements and actions of central banks and governments.
Trader Aleksandar Kumanov