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

Yohay Elam FXStreet

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.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

GBP/USD remains slightly bid near 1.3300

GBP/USD now advances marginally and manages to dispute the 1.3300 region on Tuesday. Indeed, Cable regains some balance on the back of the lacklustre performance of the Greenback, all preceding the Fed’s meeting on Wednesday and the BoE’s gathering on Thursday.

EUR/USD recedes from tops, back below 1.1400

EUR/USD manages to set aside part of the recent weakness and clinches decent gains on Tuesday. Indeed, spot keeps the trade below the 1.1400 mark amid acceptable losses in the US Dollar, all following rising optimism of a US-Iran deal and steady caution prior to the FOMC gathering on Wednesday.

Gold holds above $4,000; looks to FOMC for fresh impetus amid US-Iran tensions

Gold is seen consolidating above $4,000 as traders opt to wait for the crucial FOMC decision due later this Wednesday for more cues about the Fed's future policy path. The outlook, in turn, will influence the US Dollar and provide some meaningful impetus to the non-yielding bullion. In the meantime, the risk of resumption of US-Iran hostilities continues to underpin the USD's reserve-currency status, acting as a headwind for bullion.

Australia CPI could boost Aussie if inflation arrives above 4%

The Australian Bureau of Statistics will publish the June Consumer Price Index on Wednesday at 01:30 GMT. The report is expected to show that inflation rose 4% from a year earlier, matching the May reading. The monthly CPI is foreseen at 0.2% following the -0.7% print from May. The ABS will also release the Trimmed Mean CPI, the Reserve Bank of Australia’s favorite inflation gauge.

Indian Rupee outlook: Downtrend set to persist – Just at a slower pace

The Indian Rupee just endured its most brutal six-month stretch in years, battered by a perfect storm of global shocks. From United States-India trade uncertainty to surging Oil prices and the significant outflow of Foreign Institutional Investment from the Indian stock market, every event brought nothing but pain for the Indian currency.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.