Here is what you need to know on Tuesday, March 10:
After Monday's coronavirus-correlated bloodbath in markets, Asian stocks and S&P futures are up, yields are on the rise, and the dollar bounced from its lows. USD/JPY tops 104 in a 2% leap, while EUR/USD is below 1.14, and GBP/USD under 1.31. Gold is pressured at around $1,660 after temporarily topping $1,700 early on Monday.
Oil prices, which have plummeted also due to Saudi Arabia's decision to start a price war, is even jumping with WTI at around $33. The collapse of the OPEC+ pact with Russia triggered the Saudi move.
The bounce is a mix of correction and optimism about China. President Xi Jinping visited Wuhan, the epicenter of the disease. Moreover, the wold's second-largest economy will issue "green cards" for those free of the illness.
In the US, President Donald Trump is considering a payroll tax cut and other relief measures in response to the crisis. More details are due later on Tuesday. The news also helps sentiment.
Mark Meadows, his Chief of Staff, is in self-isolation after coming in contact with a person carrying the virus, but the president has not been tested. Many fear that the slow pace of testing in the world's largest economy implies many more cases will show up later on.
On Monday, trading was halted on Wall Street for the first time since the financial crisis in a massive sell-off. See: Coronavirus Crash: Five reasons why markets are in full panic mode and why it is here to stay
The situation in the old continent remains dire. After another jump of around 2,000 infections and 100 deaths, Italian PM Giussepe Conte announced that all of Italy is now under the most severe restrictions. Over the weekend, travel limit and event bans were limited to only a quarter of the population. Germany, France, and Spain have confirmed over 1,000 cases each. School has been called off in the Madrid region, and France forbids events of over 1,000 people.
Japanese PM Shinzo Abe is pushing through a law that would allow emergency powers and also working on stimulus measures. Worldwide, the number of infections tops 114,000, over 64,000 recovered, and 4,000 have died.
In US politics, centrist Joe Biden aims to extend his lead over left-leaning Bernie Sanders in another round of voting in the Democratic Party's primaries. Biden's decisive victory in "Super Tuesday" was cheered by markets.
Cryptocurrencies have stabilized with Bitcoin trading near $1,660.
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
Editors’ Picks
AUD/USD holds recovery gains above 0.6000 despite US-Sino trade war
AUD/USD hold the rebound above 0.6000 in the Asian session on Tuesday, helped by a recovery in risk sentiment on China's support measures to stabilize markets. A renewed US Dollar selling also aids the Aussie's upswing but further upside appears elusive amid escalating US-China trade war.
USD/JPY stalls its recovery from multi-month low; reverts to 147.50
USD/JPY is paring gains to return toward 147.50 in Tuesday's Asian session. A recovery in risk sentiment along with receding bets that the BoJ would raise the policy rate at a faster pace underpin the pair. However, resurgent US Dollar supply acts as a headwind to the USD/JPY turnaround.
Gold price sees dip-buying amid trade war escalation, will it last?
Gold price is building on its rebound from one-month lows of $2,957 early Tuesday, replicating the moves seen in Monday’s Asian trading. In doing so, Gold buyers retake the $3,000 threshold, but will they sustain the upswing amid escalating US-China trade tensions?
Ethereum risks a decline to $1,000 amid selling pressure from DeFi liquidations
Ethereum suffered a more than 27% crash within the past 48 hours, briefly dropping to a two-year low of $1,410 before recovering the $1,500 level on Monday. The decline, per Coinglass data, sparked $257.87 million in liquidations across ETH's derivatives market during the period.
Strategic implications of “Liberation Day”
Liberation Day in the United States came with extremely protectionist and inward-looking tariff policy aimed at just about all U.S. trading partners. In this report, we outline some of the more strategic implications of Liberation Day and developments we will be paying close attention to going forward.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.