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European Central Bank announced that they will purchase 750 billion euros worth of Bonds in a bid to calm fears within the markets. “Extraordinary times require extraordinary action,” ECB President Christine Lagarde said. “There are no limits to our commitment to the euro. We are determined to use the full potential of our tools, within our mandate.”


European shares marked their worst close in nearly seven years on Wednesday as recent stimulus measures failed to placate investors seeking to exit equities in the face of the coronavirus pandemic.


Oil prices slightly recovered on Thursday after a three-day selloff. Crude oil prices have weakened this whole week after demand plummeted due to the coronavirus and supplies surged in a fight for market share between Russia and Saudi Arabia.


The pound dropped against the dollar to the lowest level in nearly 35 years. British bonds also suffered on account of the panic selling in markets with 10-year British borrowing costs rising nearly 30bp higher in the previous session. The euro rose against the pound after the ECB announced a 750 billion euro ($817 billion) asset-purchase programme. The Australian dollar plunged to a 17-year low, while the New Zealand dollar tanked to an 11-year low.


Gold prices trading weak on Thursday as markets continue to be weighed down by worries about the economic damage due to coronavirus.

Economic Outlook

The Reserve Bank of Australia cut interest rates for a second time this month on Thursday after an out-of-schedule policy meeting. Other central banks also announced this week emergency interest rate cuts, asset purchases, and dollar liquidity provisions in an attempt to calm financial markets

Coronavirus Update: Today has seen Chinese officials report that Zero domestic cases have been reported for the first time. As per the recent update in all over the world the virus has infected more than 204,000 people across the world and the death toll has exceeded 8,700.

Technical Outlook

GOLD: The precious metal witnessed a sharp decline on Wednesday. The gold price currently trading above this week low $1455. And the important level to watch for today $1450 and $1500.

AUD/USD: The pair dropped to 0.55 level tanked to 17- year low on Thursday. The pair later bounced to almost 300 pips to higher after RBA Lowe’s message on FX intervention. If the bullish momentum continues the next upside level to watch 0.5880 and 0.60.  

Quote of the day: The good speculators always wait and have patience, waiting for the market to confirm their judgement.

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