Forex Today: Coronavirus takes a bite from the apple, Gold gains, Bitcoin bounces

Here is what you need to know on Tuesday, February, 18:

The coronavirus outbreak's economic impact is growing as Apple, the iPhone maker has issued a warning that it is unable to meet its guidance due to production and issues and closed stores in China. The tech giant's announcement has been weighing on the market mood, pushing gold and the yen higher. The Japanese currency continues ignoring the 1.6% quarterly downfall in output from the world's third-largest economy. 

The disease has already killed over 1,800 people and infected 72,000 according to Chinese authorities. While casinos in Macau are reopening, Hong Kong is aiming to stimulate the economy in the wake of the damage from the virus. The UK is joining the US in evacuating its citizens from the Diamond Princess cruise ship docked in Japan.

EUR/USD continues trading close to the 34-month lows of 1.0820 ahead of the release of the German ZEW Economic Sentiment, which carries expectations of a slide after recovering in late 2019.

See German ZEW survey Preview: Time to start worrying

Brexit: David Frost, chief UK negotiator insisted that his country will make its own rules after the transition period ends, adding to concerns ahead of talks that begin in March. GBP/USD has finally taken note.

The UK's jobs report for December is expected to show a deceleration in wage growth but that the unemployment rate remains at historic lows of 3.8%. The report kicks off a long list of British economic figures this week.

See UK employment preview: Three reasons why GBP/USD could bounce even if wage growth slows

The Australian dollar is on under pressure also due to the Reserve Bank of Australia's meeting minutes, which stresses that an extended period of low rates is necessary. 

US traders return today after a long weekend and market liquidity is set to rise. The Empire State Manufacturing Index is of interest.

Oil prices remain stable at the lower ground as Russia remains reluctant to cut production in coordination with OPEC. 

Cryptocurrencies have managed to find their feet after several days of losses. Bitcoin trades around $9,800.


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

USD/JPY seesaws around 107.00 amid coronavirus-led risk-off

USD/JPY remains on the back foot amid the early Thursday morning in Asia. The Japanese yen benefits from its safe-haven allure while being the only major to gain versus the US dollar during the current tough time.


AUD/USD remains under pressure below 0.6100 as markets stay defensive

AUD/USD fails to cheer better than forecast activity numbers from home and China. Globally rising coronavirus cases, extended lockdowns in Europe and grim words from key policymakers favor risk-off. 


Gold building a bullish case as COVID-19 reigns

The gold price has lost some bullish support of late as the US dollar moves higher, ending the last quarter on the front foot as a relatively illiquid market sees exaggerated moves adding to the upside support. 

Gold News

WTI pierces $21.00 as US fuels hopes of supply disturbance/control

While extending its recovery moves from the previous day, WTI clears the $21.00 mark, with a high of $21.20, while taking rounds to $21.10 during Thursday’s Asian session. The US leader expects Russia-Saudi Arabia “to work it out.”

Oil News

Dollar Shrugs Off ISM & ADP in Fear of Ugly Jobless Claims

If the first day of April is a taste of what's to come, it will be a very rocky second quarter. After falling more than 24% between January and March, the Dow Jones Industrial Average plunged opened down more than -700 points. 

Read more