Daily Alert – Thursday 26th March 2020: Biggest ever rise in US unemployment, markets calm

Mark Nugent Daily Alert, March 2020

Daily Alert – Thursday 26th March 2020: Biggest ever rise in US unemployment, markets calm

Today saw the biggest ever rise in US unemployment numbers. The figure jumped by 3.3 million vs an expected jump of 1.6 million. Market reaction was muted as there was no real surprise here and the expected number was very much a guess.

Equities are rising for the third consecutive day in most jurisdictions. However, risk sentiment is mixed as the US 10Y bond yield drops and we would normally expect it to move in the same direction as equities.

WTI is looking interesting for a short as storage capacity is in short supply, the current production cut agreement will soon lapse, Saudi has increased production and OPEC+ has splintered. This will be a key theme for next week.

My two FX trades, AUDUSD and NZDJPY both close at breakeven.

Have a great weekend, stay safe and I’ll be back on Monday.

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