Here is what you need to know on Tuesday, January 28:
China’s fast-spreading coronavirus epidemic and the rising death toll ensued a slump in the Asian equity markets, as investors remained wary about the contagion risks and its implications on the global economic growth.
China’s National Health Commission (NHC) reported confirmed coronavirus cases at 4,515 and death toll at 106 while the first case of the virus was confirmed in Germany.
However, a sense of calm prevailed across G10 fx space, with most majors in tight trading ranges, as the US dollar held steady near two-month highs against its main competitors. The US Treasury yields traded modestly flat while the US stock futures rebounded over 0.50%.
USD/JPY held onto minor recovery gains around 109.00 while the Antipodeans renewed multi-week lows. AUD/USD breached 0.6850 after the Australian NAB Business Survey disappointed.
The Kiwi hit a new seven-week low at 0.6536, tracking the weakness in the Chinese yuan. Meanwhile, the Canadian dollar was undermined by weaker oil prices, as USD/CAD tested the 1.32 handle.
EUR/USD traded close to 2020 lows on 1.1000 despite the upbeat German IFO survey. GBP/USD stalled its overnight bounce and traded flat in mid-1.30s, with all eyes on the Bank of England (BOE) base rate decision and post-Brexit trade talks with the EU.
Amid fragile market mood, gold prices consolidated the recent gains around $1480 while oil prices traded on the back foot, extending a week-long losings streak.
Cryptocurrencies traded with moderate gains, with Bitcoin trading above $9,000 mark.
- US Durable Goods Orders Preview for December: Positive patience
- US Conference Board Consumer Confidence January Preview: Now who's happy, We're all happy
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 stays weak below 0.6500 after Australian labor data
AUD/USD keeps losses below 0.6500 in the Asian session on Thursday, showing little to no reaction to the Australian jobs data for May. Trade uncertainties, escalating geopolitical tensions and the Fed's hawkish pause weigh on investors' sentiment, undermining the risk-sensitive Aussie.
USD/JPY recovers above 145.00 as US Dollar's haven demand strengthens
USD/JPY is recovering ground above 145.00 in Thursday's Asian trading. The haven demand for the US Dollar gathers strength on likely US attacks on Iran coming this weekend. Hawkish hold by the Fed on Wednesday also supports the Greenback while the Japanese Yen struggles to retain control, despite risk aversion.
Gold price bounces off weekly low; bulls seem reluctant amid hawkish Fed
Gold price attracts some dip-buyers during the Asian session and reverses part of the previous day's slide to the weekly low amid a revival of safe-haven demand, bolstered by trade uncertainties and rising geopolitical tensions. Moreover, a subdued USD price action acts as a tailwind for the bullion.
Bitcoin, Ethereum, XRP hold steady as Federal Reserve leave rates unchanged
Bitcoin and altcoins, including Ethereum, XRP, and Solana, saw slight movements on Wednesday as the crypto market stayed resilient following the Federal Reserve's decision to leave rates unchanged at 4.25%-4.50%.
In the Eurozone, inflation is also a monetary phenomenon
Monetary aggregates continue to be closely monitored by the European Central Bank (ECB), a sign that, despite the passage of time and the increasing complexity of financing circuits, quantitative theory remains relevant.
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.