Forex Today: Markets take a break from coronavirus fears, forward-looking data eyed

Here is what you need to know on Friday, January 24: 

Coronavirus: While the number of cases continues rising and China canceled several New Year's celebrations, the market mood has calmed. One of the reasons for the relative ease comes from the World Health Organization, which refrained from declaring a global emergency. USD/JPY is off the lows and gold prices have stabilized.

EUR/USD is stabilizing after suffering from the European Central Bank's lack of enthusiasm about the recent upbeat economic figures. President Christine Lagarde announced the launch of a strategic review, set to conclude by year-end. The focus now shifts to Markit's forward-looking Purchasing Managers' Indexes for January. 

See Eurozone PMIs preview: Upbeat expectations seem justified, opening the door for EUR/USD gains

Italy: Regional elections in Emiglia Romana over the weekend are seen as a test for the stability of the government, which is already vulnerable after Luigi di Maio stepped down from leading the Five-Star Movement.

PMIs are also eyed in the UK. After last week's inflation, retail sales, and Gross Domestic Product missed expectations, this week's jobs report and other statistics were positive. The fresh post-election surveys could be the tipping point for the Bank of England's decision next week. GBP/USD has managed to hold its ground despite USD strength.

See UK PMIs preview: Cementing the BOE rate cut? Five GBP/USD scenarios

Canadian retail sales figures for November are forecast to show a bounce after falling in November. The loonie was hit earlier this week by the Bank of Canada, which expressed concern about recent economic developments and opened the door to cutting rates.

The New Zealand dollar remains bid after the quarterly Consumer Price Index beat expectations with 0.5%.  The improved market mood also supports NZD/USD.

Oil prices found their feet after oil inventories data surprised with a smaller-than-expected drawdown. The coronavirus scare continues capping crude prices. 

Cryptocurrencies are on the back foot, with Bitcoin trading below $8,400. 


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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD: Dollar’s corrective decline soon to be over

The EUR/USD pair has recovered some ground after reaching a fresh 2021 low of 1.1523, finishing the week trading at around 1.1600. The American dollar gave up ground after the previous week´s sharp appreciation, although the shared currency was among its weakest rivals.


GBP/USD retreats below 1.3750 after US data

GBP/USD has pared some of its gains after US Retail Sales beat estimates, with the core group hitting 0.8% last month. Earlier, investors shrugged off dovish comments from two BOE members. 


Gold sellers defend $1,800, all eyes on US T-bond yields

Gold started the week in a calm fashion and spent the first two trading days fluctuating in a tight range above $1,750. With the US Treasury bond yields falling sharply, however, XAU/USD gathered bullish momentum and gained nearly 2% on Wednesday.

Gold News

Cardano increases partnerships worldwide; analysts predict ADA price will explode to $4

The development team behind Cardano is working on the next Daedalus update. Cardano ecosystem’s new partnerships are likely to boost the utility for ADA. Dogecoin millionaire reveals that he has invested in Cardano and expects big moves in the altcoin’s price. 

Read more

What is upsetting the US consumer?

For three months American consumers have told surveys they are unhappy. Not just mildly upset but suffering an attack of pessimism not seen in a decade.  Retail Sales in September wallop expectations for the second month in a row.

Read more