The total number of confirmed coronavirus infections in Spain rose to 124,737 as of Saturday morning from 117,710, the Health Ministry reported on Saturday.

Meanwhile, the COVID-19-related fatalities in the country climbed to 11,744 from 10,935. However, 809 new fatalities showed a slowdown in the number of new deaths when compared to 932 in the previous day.

Risk aversion

Spain’s IBEX 35 Index closed the week 2.9% lower at 6,581.60 points after posting recovery gains during the previous two weeks.

The virtual emergency meeting between the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC producers that was scheduled to take place on April 6th could be postponed to April 8th or 9th, Reuters reported on Saturday, citing two sources.

According to sources, producers will have more time to negotiate on output cuts by delaying the meeting.

Crude oil rally

Crude oil prices rose sharply during the second half of the week on hopes of output cuts. After erasing more than 55% in March, the barrel of West Texas Intermediate closed the week with an impressive gain of 32% at $28.80.

The virtual emergency meeting between the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC producers that was scheduled to take place on April 6th could be postponed to April 8th or 9th, Reuters reported on Saturday, citing two sources.

According to sources, producers will have more time to negotiate on output cuts by delaying the meeting.

Crude oil rally

Crude oil prices rose sharply during the second half of the week on hopes of output cuts. After erasing more than 55% in March, the barrel of West Texas Intermediate closed the week with an impressive gain of 32% at $28.80.

  • US dollar index (DXY) recouped some of the losses incurred last week. 
  • The level to beat for buyers is the 101.00 resistance.
 

DXY weekly chart

 
DXY is trading in a bull trend above the main weekly SMAs on the weekly chart as this week the market recouped some of the losses incurred last week. 
  

DXY four-hour chart

 
DXY gained steam until the end of the week where it is now trading above the 100.50 level and the main SMAs suggesting bullish momentum in the medium term. Buyers are likely looking for a continuation to the upside with the 101.00 handle as first hurdle followed by 101.50 en route to 103.00, the 2020 tops. On the flip side, support would be expected near the 101.50, 101.00 and 99.50 levels on any dips. 
 
   

Additional key levels

 

Next Thursday, the Canadian employment report for March will be released. Analysts at CIBC point out shutdowns in Canada began in earnest earlier than in the US, so job numbers will likely look worse. They expect the unemployment rate to rise from 5.6% to 6.6%. 

Key Quotes: 

“The extent of the economic damage from the sudden-stop in activity is slowly becoming apparent. Canadian employment insurance applications have reportedly surged in recent weeks, and data in the US show a labour market that was reeling even before many of the shutdowns began. Expect the Canadian numbers to look even more dire than those in the US since the survey period was a week later north of the border.”

“A plunge in employment of 250k jobs would double the drop in the worst month of the series. That would drive the unemployment rate up to 6.6% from 5.6%, even if there is a pullback in participation. 

“The bad news is that the reading for April is going to be even worse than these numbers. The good news is that a large fiscal stimulus package has been directed to support many individuals that are no longer employed. So the effect on income from every job lost can’t be directly compared to prior downturns. Still, the numbers on spending are going to be ugly simply because there are many purchases consumers can’t make in an environment of shutdowns.”

  • USD/CHF is trading up for the fifth day in a row on USD demand. 
  • The level to beat for buyers is the 0.9800 resistance.
 
 

USD/CHF daily chart

 
 
USD/CHF is rebounding from the 0.9500 level while nearing the 0.9800 handle and the 200 DMA on the daily chart as DXY (US dollar index) is ticking up.
 

USD/CHF four-hour chart

 
The spot is about to challenge the 0.9800 figure while trading above the main SMAs on the four-hour chart. A break beyond the above-mentioned level could introduce scope to further gains with bulls bull moving towards the 0.9900 and 1.0000 price levels on the way up while support can emerge near the 0.9700, 0.9600 and 0.9550 price levels on any retracement.
 

Additional key levels