Forex Today: Coronavirus consumes markets, Gold eyeing $1,700, German data awaited


Here is what you need to know on Monday, February 24:

Coronavirus: The respiratory disease continues spreading and is taking its toll. Chinese President Xi Jinping has sounded the alarm over the outbreak at the Communist Party's gathering. His words contrast the upbeat mood of last week. Areas in northern Italy's industrial heartland have been put under lockdown due to a significant cluster of cases. The Venice Carnaval has been canceled. In South Korea, the number of cases related to a religious sect in the south of the country is growing. 

Risk-off: S&P futures, most Asian stocks, commodity currencies, and oil are down on Monday. AUD/USD temporarily hit a new decade low, below last week's trough. While the Japanese yen is mostly unchanged, Gold prices have extended their gains, hitting a high of $1,680. Against the euro and the pound, the US dollar is recovering a significant chunk of its losses on Friday.

US data: While most of last week's American figures beat expectations, Markit's preliminary Services Purchasing Managers' Index shocked by dropped below 50, allowing an opportunity to take profits on dollar gains.

EUR/USD is trading closer to 1.08 ahead of the German IFO Business Climate figures for February. A slide from January's 95.9 is likely. Regional elections in Hamburg have dealt a blow to Chancellor Angela Merkel's CDU Party. 

Brexit:  Experts warn that if the UK reneges on pledges related to Northern Ireland, it could risk trade agreements with the US and the EU.

Saudi Arabia denied it is contemplating breaking away from Russia amid disagreements regarding oil production in the wake of the coronavirus crisis. 

Cryptocurrencies are sliding on Monday yet remain in familiar ranges, with Bitcoin trading around $9,700. 

More All the reasons why US stocks are defying gravity and why they may have more room to run

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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex News

Editors’ Picks

EUR/USD slips below 1.08 amid weak data, coronavirus headlines

EUR/USD is trading below 1.08 as eurozone Sentix Investor Confidence plunges to -42.9, around the 2008 crisis levels. Encouraging coronavirus headlines kept the euro bid earlier.

EUR/USD News

GBP/USD under pressure amid concerns about UK PM´s health

The GBP/USD pair is under pressure trading below the 1.2300 level as news that PM Boris Johnson has been hospitalized due to “persistent symptoms,” according to his spokesman. Rumors mounting Johnson is in worse shape than reported.

GBP/USD News

XRP leads cryptos on the verge of a new bullish trend

XRP/USD crosses the long-term bearish channel ceiling and signals the launch of a new uptrend in the crypto market. Ether should be the positive player in the coming weeks. Market sentiment remains very pessimistic despite the significant improvement in recent hours.

Read more

Gold: Bulls remain in control near 2-week tops, around $1640 region

Gold gained positive traction for the fourth consecutive session on Monday and climbed to near two-week tops, around the $1638 region during the mid-European session.

Gold News

WTI rebounds above mid-$27s as investors stay focused on OPEC headlines

Crude oil prices came under strong selling pressure after developments over the weekend revealed that the OPEC+ emergency meeting got postponed to Thursday to give more time to sides to negotiate.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures