Forex Today: Coronavirus fears persist, Japanese economy squeezes, cryptos climb down


Here is what you need to know on Monday, February 17:

China has announced it will stimulate the economy in the face of the coronavirus outbreak, including lower corporate taxes and increased spending. While most factories have returned to work, Beijing has tightened restrictions on movements in the Hubei province as the number of infections has topped 70,000 and the death toll is around 1,700. Outside China, the largest infection is on the Princess Diamond cruise ship. Markets are relatively calm with limited movements in currencies and gold

The Japanese economy squeezed by 1.6% in the fourth quarter, according to the preliminary release. A contraction – in response to an increase in a sales tax – was expected. However, the scale has disappointed and some fear the world's third-largest economy is set for an outright recession. Prime Minister Shinzo Abe's approval rating dropped to 43%, yet mostly due to the government's handling of the coronavirus. 

Brexit: David Frost, Chief UK negotiator, has laid down an initial stance that includes significant demands. The EU has yet to respond ahead of official talks which kick off in March. GBP/USD is holding above 1.30 as investors seem to be waiting for substance. Jean-Yves Le Drian, France's foreign minister, said that the EU and the UK face months of bitter negotiations. 

EUR/USD has started the new week close to the lowest levels since April 2017. The German central bank releases its monthly report later today after the country reported stagnation in the fourth quarter.

Cryptocurrencies have been extending their losses after a weekend that saw substantial sell-offs. Bitcoin is trading around $9,800, Ethereum around $250, and XRP below $0.30.

US markets are on holiday due to Presidents' Day, implying low volume. 

More: Should forex traders watch governments and ignore central banks? Examining USD, EUR, GBP

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

GBP/USD attempts recovery amid as Johnson's condition is in focus

GBP/USD is trading above 1.23 as the focus remains on PM Johnson's condition. The 55-year old is in intensive care, receiving oxygen and Foreign Secretary Raab is in charge.

GBP/USD News

EUR/USD rises toward 1.09 amid a better market mood

EUR/USD is trading closer to 1.09, up amid falling coronavirus cases in the old continent and as German industrial output beat expectations with 0.3% for February. New US fiscal stimulus is also eyed.

EUR/USD News

Crypto starship starts the engines, pointing beyond limits

The bullish scenarios are fulfilled and bring the Top 3 to the launch pad. Ether's dominance shoots up and improves by more than 10% in a single day. The movement shows strong potential not seen since the 2017 bump.

Read more

Gold corrects from multi-week tops, slides further below $1650 level

Gold finally broke down of its Asian session consolidation phase and dropped to fresh session lows, around the $1645 region in the last hour.

Gold News

WTI probes $30.00 following latest recovery moves, eyes on API

WTI benefits from recent risk-on, upbeat comments from US President Trump. Oil traders may now wait for the private weekly inventory data from the American Petroleum Institute (API), prior 10.485M, for fresh direction.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures