Coronavirus update: Hubei reports 65 new deaths

Anil Panchal FXStreet

Editor note: The original piece reported that Ecuador had announced its first case of Coronavirus, per a Reuters report. The information was wrong, as Ecuador's Ministry of Health acknowledged on the same date that "one Chinese traveler was hospitalized, but tests results had determined that he was not affected from the virus". Ecuador is free from any Coronavirus cases.

The latest reports from China’s state television, as shared by Reuters, mentions that the death toll in Hubei province of China, the epicenter of coronavirus, recently rose by 65 to 479 as of Tuesday’s end. The news also mentions additional 3,156 cases of infected people, making the count as 16,678. It should also be noted that Japan confirmed ten cases from the cruise ship.

Key quotes

Hubei’s provincial capital of Wuhan, where the virus is believed to have originated, reported 49 new deaths on Tuesday, up from 48 on Monday. A total of 362 people in Wuhan have now died from the virus.

New confirmed cases in Wuhan surged by 1,967 on Tuesday, up from 1,242 on Monday.

FX implications

The spreading disease should ideally weigh on the market’s risk-tone but is finding a softer footing amid overall upbeat data from the rest of the globe. Also affecting the trading sentiment could be Chinese policymakers’ efforts to placate investors. As a result, Gold prices remain on the back foot around $1,553 whereas US/JPY also holds its strength while being near to 109.50 during Wednesday’s Asian session.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

GBP/USD declines to near 1.3500 as US-Iran tensions rise

The GBP/USD pair declines to near 1.3500 during the early European trading hours on Wednesday. Ongoing tensions in the Middle East provide some support to a safe-haven currency such as the US Dollar against the British Pound. All eyes will be on the US August jobs report later on Friday.

EUR/USD falls to two-week low below 1.1600 on broad USD strength

EUR/USD remains under bearish pressure after closing in negative territory on Tuesday and trades at its lowest level in two weeks below 1.1600 on Wednesday. As tensions in the Middle East escalate further, the US Dollar gathers strength on risk-aversion and hawkish Fed repricing, forcing the pair to stay on the back foot. Later in the day, private sector employment data from the US will be watched closely by market participants.

Gold recovers above $4,300; upside seems capped as Fed bets support USD

Gold recovers early lost ground to a four-week low, and trades above $4,320 heading into the European session. A modest US Dollar pullback is seen as a key factor supporting the commodity, though any meaningful upside seems elusive amid hawkish US Federal Reserve expectations. The escalating Middle East conflict lifted crude oil prices to a fresh high since July 24, stoking inflation fears and reaffirming bets for a Fed rate hike in September.

WTI advances to mid-$90.00s, fresh high since July 24 amid escalating US-Iran tensions

West Texas Intermediate (WTI) – the benchmark US Crude Oil price – scales higher for the third straight day – also marking the fifth day of a positive move in the previous six – and climbs to a fresh high since July 24 during the Asian session on Wednesday.

BoC set to keep interest rates steady despite sticky inflation

The Bank of Canada is widely expected to keep its policy rate unchanged at 2.25% on Wednesday. This would be the seventh consecutive gathering with the central bank sitting on the fence. The BoC left its policy rate unchanged at 2.25% in July, as widely anticipated.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.