Forex Today: Coronavirus pandemic continues to back risk-off

Here is what you need to know on Monday, March 23rd:

  • The coronavirus crisis continues to dominate the headlines. The latest figures show that Italy Spain and the US have the most cases outside China, while the total death toll reached 13,664 worldwide. Europe remains the epicentre of the outbreak, but the number of cases in the US is also rapidly increasing.
  • The State of Emergency in Spain has been extended to April 11, and it seems likely that other countries will take similar measures, steepening the economic crisis and probably fueling demand for liquid dollar.
  • The US Federal Reserve has enhanced its swap lines with some other central banks. Germany, the UK and Australia all announced different stimulus measures to back business through the crisis. Further measures are likely to be announced in the upcoming days.  
  • The greenback is the most demanded currency, and would likely retain its strength. EUR/USD fell to an almost 2-year low of 1.0637, and trades nearby, while the GBP/USD pair plummeted to a multi-decade low of 1.1409.
  • The USD/JPY pair surged to 111.50, its highest since February, settling below 111.00, maintaining its bullish potential as demand for the greenback overshadows yen’s safe-haven conditions.
  • Crude oil prices plummeted Friday, settling near weekly lows. Equities also suffered, with Wall Street ending near weekly lows.
  • Oil prices bounced on Friday, with spot finishing the week just below $1,500.00 a troy ounce.
  • Cryptocurrencies:  A sea of red returns as weekend love disappears

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