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· EUR/USD Forecast: Dollar suffers from dismal data, more stimulus

EUR/USD short-term technical outlook

The EUR/USD pair neared the 38.2% retracement of its latest daily advance at 1.0950, the immediate resistance. The bullish potential seems limited, as the market has no real reasons to buy the shared currency, with gains always related to the dollar’s weakness. In the 4-hour chart, the pair offers a neutral-to-bullish stance, as the pair has advanced above its 20 and 100 SMA, which anyway lack directional strength. The 200 SMA is also flat, although above the current level. The Momentum indicator in the mentioned time-frame remains horizontal just above its 100 level, while the RSI eases, but holds around 60.

Support levels: 1.0900 1.0865 1.0830

Resistance levels: 1.0950 1.0990 1.1025

· The coronavirus pandemic has pushed 51 Japanese companies into bankruptcy with a spike in new cases seen in April, Tokyo Shoko Research said on Friday, underscoring the toll the health crisis is taking on the world’s third-largest economy.

The bankruptcies were mostly in the hotel and restaurant industries such as hot spring hotel operator Fujimi-so in Aichi, central Japan, though they were spreading to small retailers and food producers reliant on inbound tourism, the credit research firm said in a report.

· Japan’s car industry will try to avoid suspending operations during the coronavirus pandemic, but worker safety takes priority, said its automakers’ association, adding the industry was considering financial support for struggling firms.

· IMF’s Georgieva warns of a worst economic downturn since Great Depression

In remarks previewing next week’s virtual meetings of the 189-nation International Monetary Fund (IMF) and the World Bank, Managing Director Kristalina Georgieva warned that the coronavirus pandemic will drown the global economy into the deepest recession since the Great Depression.

“We anticipate the worst economic fallout since the Great Depression.

The IMF will release an updated world economic forecast on Tuesday that will show just how quickly the coronavirus outbreak has turned what had been expected to be a solid year of growth into a deep downturn.

· China’s foreign trade faces unprecedented challenges due to the coronavirus epidemic that has spread to more than 200 countries, China’s assistant commerce minister said on Friday, amid growing fears of a deep global recession triggered by the virus.

Ren Hongbin told reporters during a briefing that a survey conducted by the ministry shows that trade firms across the board face difficulties from order cancellations or delays, and that new orders are also at risk.

· China will loosen residency rules this year to make it easier for people in rural areas to move to small cities, in an effort to ease labour shortages and boost consumption in an economy jolted by the coronavirus crisis.

· Saudi energy minister says OPEC+ oil pact hinges on Mexico joining

Saudi Arabia’s energy minister said on Friday that a final OPEC+ oil supply pact to reduce 10 million barrels per day (bpd), which was agreed on Thursday, hinges on Mexico joining in the cuts.

“I hope (Mexico) comes to see the benefit of this agreement not only for Mexico but for the whole world. This whole agreement is hinging on Mexico agreeing to it,” Prince Abdulaziz bin Salman told Reuters by telephone.

The kingdom will host an extraordinary meeting by video conference at 12.00 GMT on Friday for energy ministers from the Group of 20 major economies.

Asked about other countries such as the United States, Canada and Brazil joining the OPEC+ cut pact, Prince Abdulaziz said: “They will do it in their own way, using their own approaches, and it is not our job to dictate to others what they could do based on their national circumstances.”

· Kuwait’s oil minister, Khaled al-Fadhel, said Mexico has delayed the agreement reached by OPEC+ to cut oil output by 10 million barrels per day (BPD) which was agreed in a meeting held on Thursday.

· Oil producers in the OPEC+ group, led by Saudi Arabia and Russia, were expected to pressure Mexico on Friday to seal an accord for a collective cut in output of 10 million barrels per day, before asking other nations for a further 5 million bpd of cuts.