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· EUR/USD Price Analysis: Rejected again at 1.0950

EUR/USD's struggle for upside traction continues on Monday with buyers failing to take out key hurdle for the second consecutive trading day.

The common currency is currently trading at 1.0933, having faced rejection near 1.950 during the early Asian trading hours. That level also capped upside on Friday.

The repeated failure at 1.0950 has neutralized the immediate bullish outlook put forward by the upside break of the trendline connecting March 3 and March 27 highs. The 14-day relative strength index, too, is sidelined at 50, indicating a neutral bias.

If the psychological support of 1.09 is breached, the single currency could roll over toward the confluence of the 50- and 100-hour averages at 1.0882.

Alternatively, a convincing move above 1.0950 would revive the bullish view and open the doors to the psychological hurdle at 1.10.

· Goldman Sachs calls historic OPEC+ oil output cut deal as insufficient

OPEC+, a loose organization of 24 oil producers led by Saudi Arabia and Russia, agreed to cut oil output by 9.7 million barrels per day on Sunday.

Goldman Sachs' analyst, however, is not impressed by the historical output cut agreement, as it leaves the voluntary cuts as too little and too late to avoid breaching storage capacity, ensuring that low oil prices force all producers to contribute to the market rebalancing.

· US economy will contract 40% in Q2 - JP Morgan

JP Morgan predicts that the US economy would contract by a staggering 40% in the April to June period, forcing 25 million people out of job due to the worsening coronavirus outbreak.

A few weeks ago, the investment bank had forecasted a 25% contraction in the second quarter.

· During Monday’s Asian session, Bloomberg came out with the news that India is considering to allow certain types of manufacturing and services to resume with restrictions to kick-start the economy and avoid job losses even as the nation plans to extend the world’s biggest lockdown to contain the new coronavirus outbreak.

According to the letter, industries which should be allowed to start with minimum manpower on a single shift include:

- Heavy electrical items like transformers and circuit vehicles

-Telecom equipment and components including optic fiber cable Compressor and condenser units

-Steel and ferrous alloy mills

-Spinning and ginning mills, power looms

-Defence

-Cement plants

-Pulp and paper units

-Fertilizer plants

-Paints and dyes manufacturing

-All types of food and beverages

-Seeds processing units

-Plastic manufacturing units

-Automotive units

-Gems and jewellery sector units

-All units in special economic zones and export-oriented units

The DPIIT also recommended allowing:

-Housing and construction activity

-Manufacturing of rubber needed for healthcare

-Timbre, plywood that provide packaging material to pharma companies

-FMCG and other companies producing essential commodities

· Oil prices jumped more than $1 a barrel on Monday after major producers finally agreed their biggest-ever output cut, but gains were capped amid concern that it won’t be enough to head off oversupply with the coronavirus pandemic hammering demand.

Brent crude LCOc1 futures rose $1.29, or 4.1%, to $32.77 a barrel by 0519 GMT after opening at a session high of $33.99. U.S. West Texas Intermediate (WTI) crude CLc1 futures were up $1.01, or 4.4%, to $23.77 a barrel, after hitting a high of $24.74.

“What this deal does is enable the global oil industry and the national economies and other industries that depend upon it to avoid a very deep crisis,” said IHS Markit Vice Chairman Daniel Yergin.

“This restrains the build-up of inventories, which will reduce the pressure on prices when normality returns – whenever that is.”