Forex Today: Coronavirus pandemic continues to back risk-off

FXStreet Team FXStreet

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.
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FXStreet Team

FXStreet

EUR/USD deflates to fresh lows, targets 1.1600

The selling pressure on EUR/USD now gathers extra pace, prompting the pair to hit fresh multi-week lows in the 1.1625-1.1620 band on Friday. The continuation of the downward bias comes in response to further gains in the US Dollar as market participants continue to assess the mixed release of US Nonfarm Payrolls in December.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

Gold keeps its positive bias on Friday, adding to Thursday’s advance and challenging yearly highs in the $4,500 region per troy ounce. The risk-off sentiment favours the yellow metal despite the firmer tone in the Greenback and rising US Treasury yields.