The global markets opened negatively on Monday, as the spread of the coronavirus pandemic is not reducing its pace, and forecasts for the EU and US economy are strongly negative. The currencies of developing countries fell against the dollar (won and rupee declined by 3%), while the indices of China, as well as the futures on the S&P 500, declined by 3% and 4% respectively.
Economic forecasts: according to the German Finance Ministry, "Recession in Germany is inevitable". The head of the Bundesbank, Jens Weidmann, said that the "German GDP will fall by at least 5%".
US forecasts: the economic downturn of the US in the 2nd quarter will be at least 10% per annum, and unemployment may reach 5 million. The US Congress is considering a package of assistance to households and the economy in the amount of $ 1 trillion, while the assistance for families will be up to $ 3,000.
European authorities have promised its citizens that it will compensate up to 70-80% of their salary during the quarantine.
France has adopted a new law regarding its state of emergency. EU authorities cancelled the rule of limiting the budget deficit during crisis.
Despite everything, experts still believe that the global economy will recover fairly quickly from the crisis, because the basic economic foundations have not been affected.
Update on the pandemic:
In Europe: Except Italy, it seems that there is a slowdown in the spread of the virus.
Italy - 59,000 cases
Spain - 29,000 cases
Germany - 24,900 cases
France - 16,000 cases
Britain - 5,700 cases (sharp growth)
Unfortunately, the United States is in second place with 35,400 coronavirus cases. Emergency regimes have now been introduced in New York, Washington and California.
EUR/USD is in a downward trend.
Sell the euro from a strong rebound from 1.0940 or higher.
The material has been provided by InstaForex Company - www.instaforex.com