Things to Watch out for Today as We Hit the Second Trading Quarter

Today, Wednesday, the 1st of April marks the start of a new quarter. It also marks the first trading day of the month and of the second quarter.

GBP/USD Trading Screen

Q2 2020 – Market Outlook

So what exactly are the things to look out for in this trading quarter?

  1. U.S. Coronavirus Outbreak: Coronavirus cases in the United States have now risen to over 180,000 and have almost reached 190,000. The numbers are more than two times that of China, where the virus originated from, and the numbers are showing no signs of slowing down. The virus has already claimed over 4,000 lives in the United States, and the toll continues to rise.

President Donald Trump, on the 31st of March, had warned America that this coming two weeks might be one of the toughest times in history. The white house believes there could be about 100,000 to 200,000 deaths as a result of the pandemic.

The market has been reacting to the information that’s coming from here. You might want to stay alert to that.

  1. Market’s fall: Wall Street futures are under really high pressure. So far, they have lost about 600 points. The S&P 500 has dropped by about 3%. Nasdaq 100 futures as well are down by 2.5%. Our experts have predicted more casualties for Wall Street.
  2. Safe-haven’s rise: Traders have continued to purchase more gold. Also, several traders have piled into the safety of the U.S bonds and the U.S. dollar. It is worthy of note that the USD has been rising for most of today against some other currencies even after the U.S. Federal Reserve pledged more funding as a relief for the damage already caused by Coronavirus.

The singular fact that there is a high demand for the U.S. dollars reflects that there could be a factor- beneath the surface- influencing market sentiments that are much bigger than what we think.

  1. Oil Prices Drop: As of today, oil prices have taken a hit and are dropping steadily. The prices are falling back to their lowest levels in 18 years. The U.S. crude is down by about 2%. It is currently trading close to the $20 mark that we saw on Monday morning. It has since then fallen below this level to hit its lowest since February 2002.
  2. U.S. Economic Data: At 10 a.m. ET, the Institute of Supply Management, is scheduled to release its March Manufacturing PMI report. We’re expecting a sharp drop here.

Also, at 8:15 a.m ET, the latest jobs report will be released. We are expecting that the expectations will reveal a drop of about 150,000 jobs for last month.

Our Conclusion

It’s a tough week ahead. We expect that the Coronavirus will do even more damage than it has already done. We cannot tell how much that will be, but the true extent of this damage will be revealed in the months ahead.

Regardless, the news will be flying out from end to end. We promise to keep you up to speed on the latest goings that will influence the direction of the financial market this quarter.