Canadian dollar, yet again, is on the way down among its G10 FX couterparts. Fiscal markets started the trading week with a depression.
Bellwether S&P 500 futures fell – pointing to a broadly risk-off disposition – as financial markets.
Crude oil prices sank to the lowest level since 2001, which probably explains some of the Loonie’s corpulent losses. The haven US Dollar traded broadly higher, pressuring anti-fiat gold prices.
Investors’ dour disposition may reflect anxiety ahead of a busy week for corporate earnings report that look set to paint a bleak picture of the damage wrought by the coronavirus outbreak. Perhaps most worryingly for cyclical assets like stocks and commodity-linked currencies, early signs of stabilization in the Covid-19 infections tally may be shifting the markets’ focus to the outbreak’s long-term economic impact.
For the 10 percent of the S&P 500 that have already reported, Q1 earnings have surprised on the downside relative to baseline forecasts by nearly 12.6 percent.