Daily Market Update

U.S. Dollar Gains Further, Globe Prepares for Shutdown

March 19, 2020

The U.S. Dollar kept climbing to new highs as easing packages around the world are being dished out by governments and central banks acting with all they have to try preventing a health crisis and economic one as well.

Overview

No faith in markets or guidance on when things can stabilize have stocks at their lowest levels since February 2017 and the energy sector has lost half of its value this month alone.

Everything is in the red except for the buck as the country gears up for likely longer industry-wide shutdowns and perhaps more strict measures to prevent spread. March Initial Jobless Claims increased according to this morning’s data registering at 281K over the estimate 220K. Most states such as Ohio have seen as much as six times more claims this last week than it typically experiences.

President Donald Trump signed an aid package geared towards paid leave and other relief as Congress is already working on another bill addressing payments and further fiscal easing measures. Around the world, there are curfews being established, limits on the purchase of some items, and most travel cancelled. Social distancing is taking hold of most people’s lives. As long as the fear remains, buck will be at the strongest of all time.

 

What to Watch Today…

  • Coronavirus Task Force Press Conference 11AM.

Complete Economic Calendar can be found here.

 

EUR

The Euro slid further and touched its weakest point since May of 2017 as the European Central Bank announced a €750.0 billion purchase program. Named the Pandemic Emergency Purchase Program (PEPP), it will include commercial paper. Christine Lagarde, the ECB head, exercised some of her inner Mario Draghi in saying “there are no limits to our commitment to the Euro.”

 

GBP

Extremely high volatility during what is now the largest factory shutdown since World War II in Europe and the U.S. make for a grim reality in terms of economic growth. Nevertheless, the inactivity is temporary, plus we must remain hopeful the COVID-19 spread, and its effects can be minimized, if not eliminated quickly.

Following government guidelines is best and we do believe that governments are stepping up in their efforts, which should help ease the pain and dread gripping the globe. We are in it together and it will all be addressed one day at a time.

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