How Much Coronavirus Priced into FX? – TDS
|Mark McCormick, Global Head of FX Strategy at TD Securities offered his take about the effect of the coronavirus outbreak on the FX market.
Key quotes:
“The major themes combine the feedback loop between the impact of the coronavirus and the state of the global economy. The US election is another one, but for now, the major driver rests on the magnitude of the outbreak and when things will start to stabilize. The guidance from Apple has spooked risk markets again overnight.”
“A stronger USD is the path of the least resistance in the very short-run. We likely get more stress in the short-run, and we note that besides Europe, the discounts across currencies aren't significant enough yet to call a bottom.”
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.