An Important Week Ahead and it’s all about COVID-19
We’ve witnessed a historic week which saw stocks in a meltdown falling 10%-15% from all-time highs. In the week ahead we can expect volatility to remain high as the markets try to price in the global impact of the coronavirus.
Although the economic damage from the coronavirus is expected to be temporary, central banks will be scrambling in the coming weeks to limit the damage to their respective economies.
Until the World Health Organization downgrades the global risk assessment of the coronavirus, we may well see investors continue to remain bearish. There is also the growing risk that they will declare the virus a global pandemic.
So focus this week is all about the COVID-19 and each and every update coming in regarding the virus.
Tuesday will be an important day.
There are a few key interest rate decisions coming in from Australia and Canada on Tuesday. On the same day we also have the OPEC+ decision on any further cuts to oil production.
Further trouble in Wall Street.
It is a safe bet that we can expect more company profit warnings during the week ahead. This will put a further strain on the stock markets and cause an equal response in the Forex market.
The Fed and several other central banks are expected to attempt to intervene this week by offering fresh stimulus. Whilst this will be positive for stocks, investors believe the virus will test the limits of our central banks.
The week ahead will be an interesting one. Will we see stocks make a slight recovery or will they plunge further? Whichever way it goes make sure that you watch the news wires closely as it’s going to be a volatile week for the currency market.