Forex Today: Cautiously optimistic on Brexit day; Eurozone data in spotlight


Here is what you need to know on Friday, January 31:

Despite travel warnings issued by the US and Japan not to take trips to China amid fast-spreading coronavirus, the World Health Organization (WHO) confidence in China’s quick containment efforts and upbeat Chinese PMI reports reassured markets and buoyed the risk sentiment.

The death toll in China has now reached 213 and the number of confirmed cases is 9,692. It has spread to 18 countries. 

Asian equities attempted a tepid recovery, tracking the uptick in the S&P 500 futures and solid rebound in the US Treasury yields. Consequently, USD/JPY spiked to 109.14 from 108.88 lows.

Most Asian currencies stalled their slide to multi-month lows but were not out of the woods yet. The Aussie jumped to 0.6729 while NZD/USD hovered below 0.6500. The Chinese yuan struggled to extend its recovery vs. the US dollar.

EUR/USD traded under pressure but held onto 1.1000 while GBP/USD consolidated BOE-led gains around the 1.31 region.

Oil rebounded 2% on WHO’s conciliatory tone, as traders re-assessed coronavirus’ impact on demand for oil and its products.

Gold prices traded on the back foot below $1575 amid improved market mood, although remained on track for a monthly gain.

Cryptocurrencies fell back in the red, with Bitcoin trading sub-$9,400.

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.

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