Forex Today: Coronavirus boosts Gold, BOE coin-flip and US growth eagerly awaited

Yohay Elam FXStreet

Here is what you need to know on Thursday, January 30:

Coronavirus: Asian markets are spooked by the rapid spread of the respiratory disease, with over 7,000 infected and around 200 deaths. The safe-haven yen and gold are bid. The World Health Organization is projected to elevate its guidance. While the virus is not as deadly as SARS, contagion – human to human and to markets – is rapid.

Fed: The Federal Reserve left interest rates unchanged as expected and made only subtle changes to its statement. The bank stressed that it aims to hit the 2% inflation goal and committed to supporting the repo market through the second quarter. The US dollar edged lower in response to the modest dovish tilt.

US GDP: The world's largest economy publishes its first estimate for growth in the fourth quarter and it is forecast to remain around 2.1% annualized recorded in the third quarter. Downbeat Durable Goods Orders in December probably lower real estimates.

See US Fourth Quarter GDP Preview: The fourth quarter marks time

BOE: GBP/USD is clinging to 1.30 ahead of the all-important decision by the Bank of England. The odds of a rate cut and no change are roughly equal and high volatility is expected. Apart from the announcing rates now, the bank is set to hint about future moves, and that is set to rock sterling as well.

See BOE Preview: Carney to cause carnage with a hawkish cut? Four scenarios for GBP/USD

Brexit: The EU Parliament approved the UK's exit out of the bloc, a formality ahead of Friday's official move. Britain enters a transition period that expires at year-end.

Eurozone: German states publish preliminary Consumer Price Index figures for January throughout the European morning. The figure feeds into Friday's all-European statistics.

Oil: The "black gold" has been extending its sell-off following a surprising build in US inventories and as the coronavirus scare lowers demand forecasts. WTI trades below $53, despite instability in the Middle East.

Cryptocurrencies: Digital currencies have been consolidating recent gains, with Bitcoin hovering around $9,300.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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