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.
Cryptocurrencies: A sea of red returns as weekend love disappears

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FXStreet Team

FXStreet

EUR/USD keeps the rangebound trade near 1.1850

EUR/USD is still under pressure, drifting back towards the 1.1850 area as Monday’s session draws to a close. The modest decline in spot comes as the US Dollar picks up a bit of support, while thin liquidity and muted volatility, thanks to the US market holiday, are exaggerating price swings and keeping trading conditions choppy.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold battle around $5,000 continues

Gold is giving back part of Friday’s sharp rebound, deflating below the key $5,000 mark per troy ounce as the new week gets underway. Modest gains in the US Dollar are keeping the metal in check, while thin trading conditions, due to the Presidents Day holiday in the US, are adding to the choppy and hesitant tone across markets.

AI Crypto Update: Bittensor eyes breakout as AI tokens falter

The artificial intelligence (AI) cryptocurrency segment is witnessing heightened volatility, with top tokens such as Near Protocol (NEAR) struggling to gain traction amid the persistent decline in January and February.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.