Forex Today: Coronavirus dampens mood, top US Non-Farm Payrolls hints eyed, Ripple roars

Yohay Elam FXStreet

Here is what you need to know on Wednesday, February 5:

Coronavirus: Markets returned to paying attention to the respiratory disease which has already infected around 25,000 and taken the lives of nearly 500. Additional companies such as Nike have warned about the economic impact. Markets have turned down again after shrugging off concerns earlier in the week. Gold and yen are recovering.

Oil: The "black gold" remains under pressure as Russia refuses to support further output cuts, contrary to Saudi Arabia's request. Chinese demand is set to decline substantially due to coronavirus. The US inventory data may move WTI from its grip on $50.

See Coronavirus: Top five safe-haven assets to buy in times of trouble in 2020

GBP/USD has stabilized around 1.30 after hitting a new six-week low on Tuesday. Fears of a no-trade-deal Brexit still loom over sterling, while recent data has been showing improvement. Markit's final Purchasing Managers' Index for the services sector is eyed.

EUR/USD remains pressured closer to 1.10 amid dollar strength. Final services PMI is awaited.

New Zealand: The kiwi dollar has risen after the South Pacific nation reported a drop in the unemployment rate to 4%, better than expected.

The US ADP private-sector jobs report for January is set to show a more moderate increase in positions after a robust December. The indicator serves as a hint towards Friday's Non-Farm Payrolls.

See ADP Employment Change Preview: Trade pact revival?

The ISM Non-Manufacturing PMI will also provide insights toward America's jobs report and will shed light on the all-important services sector. It is expected to hold around 55, reflecting solid growth.

ISM Non-Manufacturing PMI Preview: Manufacturing to the fore

US politics: Partial results from the Democratic Party's Iowa caucuses have shown a tight race between moderate Pete Buttigieg and left-leaning Bernie Sanders. The odds that billionaire Michael Bloomberg would win the nomination have risen while former Vice President Joe Biden has fallen. President Donald Trump praised the strength of the US economy in his State of the Union address, which was seen as a campaign speech.

Cryptocurrencies: Ripple's XRP has been standing out with substantial gains, reaching $0.27. Ethereum is also on the rise, trading around $190, while Bitcoin is stable at around $9,200.

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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