World Economy Marks the “Ugliest Week” as Recession Digs Deeper

Forex Market Overview

Amidst the global crisis going on due to the Chinese virus outbreak–COVID’19, the entire world is slayed as the virus has spread to more than 100 countries and not ready to terminate any soon. The economy is facing one of the major blows of all times as we see a dearth of momentum and funding crunches due to serious lockdowns.
Therefore, here we are listing the major highlights of economy breakdown as the markets worldwide crash down, businesses coming to a standstill and more importantly has claimed more than 8,000 lives. The current situation has rightly worsened and tightened the liquid availability as Coronavirus continues to dominate.

As the Global markets set aside their gains, we see the greenback closing on a multiyear high and rising consequently against major currencies on Monday, March 23, 2020. As the US Dollar retains its strength, the Federal Reserve has inflated its swap lines with other Central Banks as well.

The US Dollar has breached an almost 3 years high against the Euro as it hits 1.06864. While, against the Aussie currency viz., Australian Dollar, the greenback is marking a 17 year high since 2003 and breaches an 11-year peak against the New Zealand Dollar. Moreover, the world’s second-largest economy China, who is embraced for the pandemic outbreak is hitting in red at 7.1180 and continues to gain ground against the US Dollar and the Great Britain Pound dips to a multi-decade low at 1.1409 against USD.

Additionally, Wall Street turns off the lights as Dow Jones Industrial Average dumped more than 900 points as the beginning of the trading session on Monday. Alongside, the S&P 500 and NASDAQ Composite record a dip of 5% which was previously limited to a maximum limit of 3.8% and 3.1% respectively. This has led to a maximum allowable limit which saved the futures from hitting the lower circuit and ultimately coming to a halt.

The Asian Markets are no exception as the sectors shut down leading the stocks plummeting and recording some serious and fresh lows, reminding about one of the massive recessions of all times.

Crude Oil also faces one of the unprecedented lows as the lockdown escalates in almost all the affected countries. Unfortunately, the price of the oil has been nosediving over the past 4 weeks straight as the demand for fuel slashes.

Nonetheless, Gold that was considered as the safest havens for investors is also facing a price crib as the recession digs deeper. At the time of writing, the safe haven was exchanging hands at $1,491 and will appear bullish beyond $1,500. Impressively, the US Dollar exchanges the tag for safe haven in place of the yellow metal. The support lies around the November low’s price at $1,445 and major resistance at $1,500.

Crypto market also follows the drill as it turns red, wherein the king of the cryptos hit below $6k again after hitting the weekly highest around $6.9k.