Liquidity is so thin at the moment. There are very few orders in the market, most of which appear to come from algorithm players
On Wednesday , The dollar resumed its descent against the safe-haven Japanese yen and Swiss franc on Wednesday after a rebound the previous day as nervous sentiment over the corona-virus epidemic persisted. Asian shares and Wall Street futures fell as growing scepticism about Washington’s stimulus package to fight the corona-virus outbreak knocked the steam out of an earlier rally.
The virus emerged late last year in the central Chinese province of Hubei but has since spread rapidly outside of China, leading to more than 4,000 deaths.
On Wall Street all three major indexes jumped nearly 5% on Tuesday, one day after U.S. equities markets suffered their biggest one-day losses since the 2008 financial crisis.
Benchmark U.S. 10-year Treasury yields were last at 0.7603%, more than double Monday’s record low yield of 0.3180%.
The euro is also in focus before a European Central Bank meeting on Thursday, where policymakers will face pressure to ease policy after Italy put its entire country on lock-down in an attempt to slow new corona-virus infections.
The dollar had jumped back on Tuesday as investors hoped global monetary policymakers will launch further stimulus plans aimed at bolstering economies hit by trade and travel disruptions.
U.S. President Donald Trump said on Tuesday he will ask Congress for a payroll tax cut and other “very major” stimulus moves, although the details remain unclear.
The moves mirrored falls in U.S. equity futures and U.S. bond yields in early trade in Asia ,with most investors still on the sidelines even after risk assets made some recovery on Tuesday on hopes governments will take measures to ease the economic pain from the epidemic.
Oil prices jumped over 8% on Tuesday, bouncing from the biggest rout in nearly 30 years a day earlier, as the possibility of economic stimulus encouraged buying and U.S. producers slashed spending in a move that could cut output.
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