Please note ThinkMarkets does not provide CFD services to residents of the US.

Please note ThinkMarkets does not provide CFD services to residents of the US.

Learn To Trade
 
Indicators & Chart Patterns

Deepen your knowledge of technical analysis indicators and hone your skills as a trader.

Find your detailed guides here
Trading Glossary

From beginners to experts, all traders need to know a wide range of technical terms. Let us be your guide.

Learn more
Knowledge Base

No matter your experience level, download our free trading guides and develop your skills.

Learn more
Learn To Trade

Trade smarter: boost your skills with our training resources.

Create a live account
Market Analysis
 
Market News

All the latest market news, with regular insights and analysis from our in-house experts

Learn more
Economic Calendar

Make sure you are ahead of every market move with our constantly updated economic calendar.

Learn more
Technical Analysis

Harness past market data to forecast price direction and anticipate market moves.

Learn more
Live Webinars

Boost your knowledge with our live, interactive webinars delivered by industry experts.

Register now
Special Reports

Engaging, in-depth macroeconomic analysis and expert educational content from our in-house analysts

Learn more
Market Analysis

Harness the market intelligence you need to build your trading strategies.

Create a live account
Partnership
 
Affiliate Programme

Grow your business and get rewarded. Find out more about our Affiliate Programme today.

Learn more
Introducing Broker

ThinkMarkets ensures high levels of client satisfaction with high client retention and conversion rates.

Learn more
Proprietary Trading

Partner with us to build your own prop trading business. Enquire with our account managers today.

Learn more
White Label

We supply everything you need to create your own brand in the Forex industry.

Learn more
Regional Representatives

Partner with ThinkMarkets today to access full consulting services, promotional materials and your own budgets.

Learn more
Refer a friend

Receive $50 for you and your friend when you convert them into an active trader of ThinkMarkets.

Learn more
Partnership

Plug into the next-gen platforms and the trades your clients want.

Partner Portal
About ThinkMarkets
 
Sponsorships

Check out our sponsorships with global institutions and athletes, built on shared values of excellence.

Learn more
About Us

Find out more about ThinkMarkets, an established, multi-award winning global broker you can trust.

Learn more
Careers

Discover a range of rewarding career possibilities across the globe

Apply now
ThinkMarkets News

Keep up to date with our latest company news and announcements

Learn more
Trading Infrastructure

When it comes to the speed we execute your trades, no expense is spared. Find out more.

Learn more
Contact Us

Our multilingual support team is here for you 24/7.

Learn more
About ThinkMarkets

Global presence, local expertise - find out what sets us apart.

Create a live account
Log in Create account

Euro and crude oil drop as surge in EU virus cases hurt demand outlook

Fawad Razaqzada Fawad Razaqzada 23/03/2021
Euro and crude oil drop as surge in EU virus cases hurt demand outlook Euro and crude oil drop as surge in EU virus cases hurt demand outlook
Euro and crude oil drop as surge in EU virus cases hurt demand outlook Fawad Razaqzada
Risk off: Although stock indices were down only slightly at the time of writing, there has been a sharp reversal in risk appetite for other assets including FX and  crude oil, which took a battering again. Travel and leisure stocks, and miners, were the among the weakest this morning. FX traders moved into the safe-haven Japanese yen and US dollar, and out of growth sensitive commodity dollars. The euro and pound also dropped noticeably sharply.

Lockdowns here to stay for longer: It looks like investors are paring back some of their excessively optimistic growth projections and end of lockdowns timing. They are realising that though there might be light at the end of the tunnel, it is proving to be an extremely long tunnel and we are still nowhere near the end of it. A surge in virus cases in mainland Europe, where the rollout of vaccines has been painfully slow, has cast doubt on resumption of travel in the region. This is why the German government has decided to extend the nation’s lockdown to 18 April and will shut down almost completely over the Easter holiday to defuse another wave of Covid infections. Among other things, this is hurting demand projections for crude oil and holidays. Everything else being equal it means that growth will be slower to pick up and inflationary pressures are likely to be weaker than previously thought. Hence, yields have also fallen on German and UK government debt, allowing gold to edge higher.

Pound-ed: Meanwhile, the pound was hit by weakness in UK jobs data. Although the unemployment rate fell unexpectedly to 5.0% from 5.1%, this was overshadowed by a big upsurge in jobless claims. They rose by 86,600 applications during February, much higher than a 9,000-increase expected by analysts.

Coming up: Treasury Secretary Janet Yellen and Federal Reserve Chair Jerome Powell are set to face lawmakers in Congress. It will be interesting to see whether Yellen will push for more spending given the sky-high government debt.  Powell will probably re-iterate the same message he did at the FOMC presser last week, namely that although the economy is progressing well, it is still far from complete and so the Fed will continue to provide monetary support.
 
EUR/USD: Keep an eye on this pair as concerns over lockdowns in EU and slow progress on vaccines relative to the US could see the exchange rate drop further lower after recently breaking and now holding below the key 1.20 handle. The 200-day moving average is in sight now at 1.1850, below which there is not much further support until the lower trend of the bear channel at 1.18ish:

EUR/USD
Source: ThinkMarkets and TradingView.com
Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.

Related articles:

US CPI Watch: What markets stand to lose and ...

By ThinkMarkets

13/05/2024

Weekly outlook: US CPI stands ready to rock t...

By Alejandro Zambrano

13/05/2024

Weekly Index Dividends

By ThinkMarkets

13/05/2024

BoE rate meeting: will it be enough to wake ...

By Alejandro Zambrano

08/05/2024

Weekly Index Dividends

By ThinkMarkets

06/05/2024

Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
Back to top