Forex Today: Coronavirus devastates Chinese markets, Boris pressures the pound, US data eyed


Here is what you need to know on Monday, February 3:

Coronavirus news: The number of official cases has topped 17,000, and the death toll is around 360. The first death outside China has been reported, and additional airlines have limited flights to the mainland. Testing kits have improved, and medicine used for HIV may help in curing the virus. The worst is probably still ahead. 

Coronavirus market response: Chinese markets have reopened after the New Year's holiday with a sharp downfall, carrying down prices of metals. The People's Bank of China cut interest rates on reverse repos and took other measures to stabilize markets. US stock futures are pointing to recovery after a sharp selloff on Friday. The yuan is down 1%, while USD/JPY has stabilized around 108.50. Gold is trading around $1,580, off the highs. The US dollar is generally stable on Monday after a significant drop on Friday. 

Oil prices are also on the back foot amid the outbreak, with a potential fall of 20% in Chinese petrol imports and Citi seeing a $15 drop in prices. OPEC and non-OPEC members are watching the situation closely.

Brexit: Prime Minister Boris Johnson is set to present his vision for future EU-UK relations after Britain officially left on Friday. He will reportedly propose "walking away" from talks if they fail to work according to plan. Johnson aims for a Canada-style trade agreement. GBP/USD is on the back foot.

Eurozone: Markit's final Purchasing Managers' Indexes for January are expected to confirm slower contraction in the old continent. 

The US ISM Manufacturing PMI is forecast to recover in January from the low of 47.2 recorded in December. The industry is struggling while the services sector, which is growing at a rapid clip. The figure serves as the first hint toward the Non-Farm Payrolls on Friday. 

See US Manufacturing PMI Preview: Trade takes back seat to the virus

Cryptocurrencies are consolidating their recent gains, with Ripple standing out by topping $0.25.

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

AUD/USD: Bulls continue to target 0.6300

AUD/USD: Bulls continue to target 0.6300

AUD/USD traded in a tight range and faltered once again just ahead of the key 0.6300 hurdle on the back of the renewed buying interest in the US Dollar and the widespread knee-jerk in the risk complex.

AUD/USD News
EUR/USD: Further gains look at 1.0600 and above

EUR/USD: Further gains look at 1.0600 and above

The weekly recovery in EUR/USD gave signs of some loss of momentum despite the pair hit new three-week highs around 1.0460 in a context dominated by the resurgence of the bid bias around the Greenback.

EUR/USD News
Gold remains on track to challenge record peaks

Gold remains on track to challenge record peaks

Gold price sticks to positive bias for the third successive day on Wednesday and trades near its highest level since November 1 above $2,750. The uncertainty around US President Donald Trump's trade policies turns out to be a key factor that continues to drive haven flows towards the precious metal.

Gold News
Dogecoin Price Prediction: Bulls target $0.40 rally as Trump officially launches Elon Musk’s DOGE

Dogecoin Price Prediction: Bulls target $0.40 rally as Trump officially launches Elon Musk’s DOGE

Dogecoin price rose 5% on Wednesday to reclaim $0.38 as Donald Trump signed the DOGE department into law. Media reports linking the Dogecoin logo to the official DOGE website sparked bullish speculations that a $0.50 breakout could be imminent. 

Read more
Netflix posts record quarter, as Trump talks tariffs on China

Netflix posts record quarter, as Trump talks tariffs on China

There has been a positive tone to risk this week, as the market digests Trump 2.0. However, Trump is not the only show in town. Earnings reports are also a key driver of stock indices, and the news is good.

Read more
Trusted Broker Reviews for Smarter Trading

Trusted Broker Reviews for Smarter Trading

VERIFIED Discover in-depth reviews of reliable brokers. Compare features like spreads, leverage, and platforms. Find the perfect fit for your trading style, from CFDs to Forex pairs like EUR/USD and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures