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Africa and International Market Report: 04 May 2020
Africa and International Market Report: 04 May 2020
Posted

By - Jamel Lahiani

Posted - 04-05-2020

The Trump administration’s economic intervention has double-edged consequences to the US economy. While it tries to push the US economic activities by a huge budget and ask the US state to limit the lockdown, President Donald Trump revived a threat of new tariffs against China causing a red coloration for the Dow Jones with a decline of -0.22 percent. on the other side, the European DAX and Japanese Nikkei gained respectively 3.3 percent and 1.86 percent amid a china positive trial results for a drug to treat COVID-19 and further stimulus to bolster the economic activities.

Recent published economic data in Europe showed economic activity in the bloc contracted at a record rate in the first quarter and inflation slowed sharply due to coronavirus-induced lockdowns. Economists expect even worse numbers for the second quarter.

The crude oil price war between Saudi Arabia and Russia was finished by an agreement between OPEP and Russia to 10 million BPD oil cut for May that caused a recovery of oil price. So the WTI crude oil closed last week at the price of 15.369 US $ with a 10.3 percent variation. While the crude oil demand around the world still exceeding the offer as many experts say. The oil price has downward pressure due to the lack of new storage possibilities, especially in the US.

The last week, Gold and silver recognized an important correction after huge upside movement a week before and recording respectively -1.63% and -1.85%; amid a wave of the global risk-aversion trade and strong market volatility.

Bitcoin price was jumped by 15.77 percent and fluctuating around 8915.98 US dollars. In African currency markets, The Nigerian NAIRA appreciates face to the US dollar and closed the week at 387.00 US dollars. While the South Africa ZAR appreciated face to the US dollar by -1.34 % and closed last week at 18.79737 US dollars.

The last week main markets prices and variations

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Market in Focus: 04 May – 08 May 2020
We have a list of high impact events this week. The publication of the events can leads to a strong movement or a trend for the related currencies. The discussion of the events impacts will be done within the daily FOREX report.

The publications that have a very significant theoretic impact are:

USD: The Trade Balance released by the Bureau of Economic Analysis and the U.S. Census Bureau is a balance between exports and imports of total goods and services. ” Tuesday”.

USD: The ISM Non-Manufacturing Index released by the Institute for Supply Management (ISM) shows business conditions in the US non-manufacturing sector. ”Tuesday”.

USD: The Employment Change released by the Automatic Data Processing, Inc, Inc is a measure of the change in the number of employed people in the US. “Wednesday”.

GBP: BoE’s Governor Bailey speech. ”Thursday”.

CAD: The Unemployment Rate released by the Statistics Canada is the number of unemployed workers divided by the total civilian labor force. It is a leading indicator for the Canadian Economy. ” Friday”.

USD: The nonfarm payrolls released by the US Bureau of Labor Statistics presents the number of new jobs created during the previous month, in all non-agricultural business.”Friday”.

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