CORONAVIRUS CRISIS:
Ø Total confirmed cases: More than 2,185,938
Ø Total deaths: At least 146,969
Ø The coronavirus COVID-19 is affecting 210 countries and territories around the world and 2 international conveyances: the Diamond Princess cruise ship harbored in Yokohama, Japan, and the Holland America's MS Zaandam cruise ship.
Ø US cases: At least 678,210 (+640), and deaths: 34,641 (+24)
Ø Spain cases: At least 184,948, and deaths: 19,315
Ø Italy cases: At least 168,941, and deaths: 22,170
Ø Thailand cases: At least 2,700 (+28), and deaths: 47 (+1)
· The dollar dipped on Friday as a news report on signs of success in a COVID-19 treatment drug trial as well as early plans to re-open the U.S. economy drove fresh optimism and risk appetite.
The Australian and New Zealand dollars led gains, with both rising about 1% before paring a little, while the pound and euro also rose to recoup some of the past two days’ losses.
Optimism on Friday was sparked by hopes for a successful treatment of COVID-19, the respiratory disease caused by the coronavirus, and was carried through the Asian day in spite of dismal economic news.
Medical news website STAT, citing a recorded discussion between doctors involved in a clinical trial, said most of 125 patients given Gilead’s (GILD.O) remdesivir drug at a hospital in Chicago had recovered and been discharged.
The dollar last sat at $1.0874 per euro EUR= and $1.2500 per pound GDP= and firmed to 107.70 yen JPY=.
The Aussie AUD=D3 last bought $0.6367 and the kiwi NZD=D3 at $0.6019. Against a basket of currencies =USD the U.S. dollar was 0.1% softer but set for a weekly gain of 0.3%, its smallest weekly move since February.
· EUR/USD short-term technical outlook
The EUR/USD pair has briefly pierced the 61.8% retracement of its late March advance at 1.0830, now trading a handful of pips above it. The pair is at risk of extending its slump, as, in the 4-hour chart, its developing below all of its moving averages, with the 20 SMA gaining downward traction. The Momentum indicator heads firmly lower within negative levels, while the RSI hovers near oversold levels, all of which favours another leg south for this Friday.
Support levels: 1.0830 1.0800 1.0765
Resistance levels: 1.0860 1.0890 1.0925
· GBP/USD short-term technical outlook
The GBP/USD pair is trading well below 1.2515, the 61.8% retracement of its latest daily slump, and gaining bearish strength according to intraday charts. The 4-hour chart shows that the 20 SMA stands directionless a few pips above the mentioned level, while the price holds above the larger ones. Technical indicators have extended into negative levels but have limited bearish strength. The risk is skewed to the downside, with a steeper slide expected on a break below 1.2405.
Support levels: 1.2405 1.2370 1.2320
Resistance levels: 1.2465 1.2515 1.2550
· Fed’s Kashkari: Staged approach to reopening the US economy makes sense – Fox
While speaking in an interview with Fox News, Minneapolis Federal Reserve (Fed) President Neil Kashkari said that a staged approach to reopening the US economy makes sense.
"When I looked at the president's plan it seems consistent with the advice and the feedback that we've heard from health experts, that there is a way to slowly reopen the economy."
"Obviously we want to try to avoid the virus flaring back up again and giving back the gains that we've had, and I think a staged approach, looking over the horizon, makes sense."
His comments come after US President Donald Trump outlined a three-phase plan that could allow some states to begin as early as this month lifting limits meant to contain the disease's spread.
· Japan hopes to start distributing coronavirus relief payments next month, it said on Friday, after extending a state of emergency nationwide in the face of criticism that its response to the crisis had been slow and inefficient.
A supplementary budget detailed payouts of 300,000 yen to households with incomes hit by the outbreak, but pressure mounted on Abe, some from within his own party, to step up the help with a payment of 100,000 yen to all citizens.
· Oil prices were mixed on Friday after the weakest Chinese economic data in decades showed the impact of the coronavirus pandemic, offsetting some earlier gains on optimism for President Donald Trump’s early plans to revive the U.S. economy.
Brent was up by 66 cents, or 2.4%, at $28.48 a barrel by 0645 GMT, while U.S. crude CLc1 for May delivery, which expires on April 21, was down 47 cents, or 2.4%, at $19.40 a barrel. The more active June contract was up 74 cents, or 2.9%, at $26.27.
· WTI drops more than 30 cents as China registers first GDP contraction since 1992
West Texas Intermediate crude is losing altitude with China reporting economic contraction for the first time since 1992.
China, on Friday, reported a 6.8% drop in the gross domestic product (GDP) for the first quarter in annualized terms versus expectations for a 6.5% decline. China also reported grim numbers for Industrial Production and Retail Sales.
Oil may continue to lose ground during the day ahead as China's historical slump has underscored the demand destruction brought on by the virus outbreak. The OPEC+, a group of major oil producers led by Russia and Saudi Arabia, agreed to cut output by 9.7 million barrels per day to support prices. However, a majority of analysts believe the output cuts aren't enough to compensate for the slide in demand.
Technical levels
Support: $19.53 (hourly chart support), $19.16 (April 15 low).
Resistance: $20.32 (lower high on the hourly chart), $20.66 (resistance of April 15 high on the hourly chart).
Reference: Reuters, Worldometers, FX Street
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