Forex Today: Coronavirus crisis accelerates and knocks down risk, focus on German IFO

Here is what you need to know on Monday, January 27: 

Concerns over the China Coronavirus rapid spread intensified, as the death toll rose to at least 80 and 2744 cases confirmed while the contagion spilled over across the Chinese borders to the US, Australia, Thailand, Mongolia and South Korea.

Risk-off was at full steam in Asia, with USD/JPY downed to over a two-week low of 108.73 before it recovered the 109 level. The traditional safe-haven, Gold, gapped up and reached $1589, the highest since January, 8.

Markets remained worried about the economic implications of China’s spreading virus outbreak and sold-off risk assets across the board. Asian stocks were in a sea of red while the US indices futures dropped nearly 1%. The benchmark 10-year US Treasury yields slumped to a 15-week low, down over 2%.

The Kiwi was the biggest loser and surrendered the 0.66 handle while the Aussie also followed suit and eroded the 0.6800 threshold, hitting the lowest in seven-weeks. USD/CAD traded firmer above 1.3150, as the Canadian dollar was undermined by the 2.5% drop in oil prices.

Meanwhile, the US dollar remained buoyed across its main competitors amid risk-aversion. EUR/USD extended the bearish consolidation phase on 1.1000 while the cable posted small losses but held above the 1.3050 support.

Cryptocurrencies traded on the back foot, with Bitcoin trading above $8,600.