Markets very quiet

EU GDP stays just above even

Nikkei -0.59% Dax 0.21%

UST 10Y 1.59%

Oil $52/bbl

Gold $1575/oz

BTCUSD $10278

 

Europe and Asia:

EUR GDP 0.1% vs. 0.1%

 

North America:

USD Retail Saleas 8:30

It's been a very quiet night in FX and equity markets but a mild risk-on tone has managed to prevail as the pace of new coronavirus cases has started to slow and there were no significant additional outbreaks outside of mainland China.

It's still too early to tell just how much of an impact the virus will have on global Q1 GDP but for now, the market is operating under the assumption that normal business activity will resume in March as the quarantine period exhausts the infection.

That may be extraordinarily optimistic given the long incubation period of the virus but for now, investors continue to shrug off the economic impact of the pandemic as essentially a one-off affair.

Meanwhile, the economic calendar is quiet today with only the European GDP released. The second reading showed that the region grew at a sclerotic 0.1% rate in Q4 of last year as the manufacturing slowdown hurt Germany the most. Given the massive dislocation issues in Q1 of this year European growth in the front half of the year is unlikely to be much better and could, in fact, turn negative, but EURUSD flows have already anticipated a lot of bad news and the pair appears to be finding a modicum of support under the 1.0850 level.

Meanwhile in North America today all eyes will be on the US consumer as Retail Sales will be released at 12:30 GMT. The report has disappointed 4 out of the 5 past times, but last month's data was a positive surprise and bulls are hoping that this is the start of a new trend as consumer confidence and low unemployment boost consumption. The market is actually looking for a lower reading of 0.3% versus 0.7% the period prior, but if the data does print better than expected it could provide a lift to USDJPY which has struggled to clear the 110.00 figure. A close above that level would signal that the risk rally continues and could open the way for a move towards 111.00 as the month proceeds.

Past performance is not indicative of future results. Trading forex carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade any such leveraged products you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading on margin, and seek advice from an independent financial advisor if you have any doubts.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD trying to set an interim bottom

EUR/USD has been consolidating around 1.0800 for a second consecutive day, ignoring risk-off and broad dollar’s demand. The case for a corrective advance becomes stronger.

EUR/USD News

USD/JPY stabilizes around 112.00 fresh 2020 highs

The USD/JPY pair has finally stalled at 112.22 but holds on to most of its latest gains. Buyers defending the downside in the 111.60/70 price zone.

USD/JPY News

AUD/USD at an over one-decade low near 0.6600

An uptick in the Australian unemployment rate, moving further away from RBA’s desired 4.5% level took its toll on the Aussie, also pressured by ruling risk-off.

AUD/USD News

Gold jumps to the highest level since February 2013, around $1620 area

Gold reversed an early dip to the $1604 area and jumped to fresh multi-year tops during the mid-European session on Thursday.

Gold News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info

Forex Majors

Cryptocurrencies

Signatures