|

EUR/USD: Coronavirus spreads euro’s gap lower

EUR/USD is down this Monday, as risk aversion backs the American currency at the beginning of a new week. The pair gapped lower and bottomed at 1.0804, on weekend news indicating that the coronavirus outbreak continues to spread outside China, Valeria Bednarik of FXStreet reports. 

Key quotes

“Italy, South Korea and Iran are reporting the larger number of cases. Fears that the outbreak becomes a pandemic and hit harder global growth dominate the market.”

“The German Business Climate Survey for February showed that the index bounced to 96.1  from 95.2. The assessment of the current situation improved to 98.9 while expectations were also up, to 93.4 from 92.9.”

“The US has just released the January Chicago Fed National Activity Index, which improved to -0.25 from -0-51, also beating the market’s expectations of -0.92. The country will publish later the Dallas Fed Manufacturing Index, foreseen at 11.8 in February from -0.2 in the previous month.”

Author

More from FXStreet Team
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD flatlines below 1.1800 ahead of Fed Minutes

EUR/USD struggles to find direction and continues to move sideways below 1.1800 for the second consecutive day on Tuesday as markets remain in holiday mood. Later in the American session, the Federal Reserve will publish the minutes of the December policy meeting.

GBP/USD retreats to 1.3500 area following earlier climb

GBP/USD loses its traction and trades flat on the day near 1.3500 after rising to the 1.3530 area early Tuesday. Trading conditions remain thin ahead of the New Year holiday, limiting the pair's volatility. The Fed will publish December meeting minutes in the late American session.

Gold rebounds toward $4,400 following sharp correction

Gold gathers recovery momentum and advances toward $4,400 on Tuesday after losing more than 4% on Monday. Increased margin requirements on gold and silver futures by the Chicago Mercantile Exchange Group, one of the world’s largest trading floors for commodities, prompted widespread profit-taking and portfolio rebalancing.

Tron steadies as Justin Sun invests $18 million in Tron Inc.

Tron (TRX) trades above $0.2800 at press time on Monday, hovering below the 50-day Exponential Moving Average (EMA) at $0.2859.

Economic outlook 2026-2027 in advanced countries: Solidity test

After a year marked by global economic resilience and ending on a note of optimism, 2026 looks promising and could be a year of solid economic performance. In our baseline scenario, we expect most of the supportive factors at work in 2025 to continue to play a role in 2026.

Crypto market outlook for 2026

Year 2025 was volatile, as crypto often is.  Among positive catalysts were favourable regulatory changes in the U.S., rise of Digital Asset Treasuries (DAT), adoption of AI and tokenization of Real-World-Assets (RWA).