Forex Today: Monday mayhem, wild currency moves, Gold fakeout, oil -30%, amid coronavirus panic


Here is what you need to know on Monday, March 9:

Markets are panicking with wild moves across the board, including flash crashes. Investors are increasingly worried about the spread of coronavirus and its impact on the global economy.

Coronavirus greatest worries: Over the weekend, Italy announced that it is locking down most of its north, an area including 16 million people – a quarter of the population – and most of its industry. The death toll jumped from 233 to 366 on Sunday, and the number of infections topped 7,000. Markets are also worried about the spread in the US – the world's largest economy – where testing for the respiratory disease has been slow. America's mortalities are only at 21, but some fear a leap. In total, over 110,000 cases are confirmed, and the death toll is around 3,800.

Mammoth bond moves: Investors are flocking into the safety of US bonds and reflecting an outright US recession. The benchmark US 10-year Treasury yield is dropping below 0.50%. PIMCO says an outright downturn is on the cards. 

The US dollar is on the back foot against majors with USD/JPY falling below 102 at one point, the lowest since 2016, EUR/USD nearing 1.15, the highest since December 2018, and GBP/USD swinging above 1.31 at one point. The most extreme moves were reversed, but the USD/JPY remains below 103.

The greenback beat commodity currencies with AUD/USD flash-crashing below 0.64, NZD/USD to near 0.60. USD/CAD jumped above 1.37 and is holding onto gains above 1.36, amid the fall in prices. 

Gold jumped to a new seven-year high at $1,703.19 before turning down and trading below $1,670. 

Crude crashing: Saudi Arabia decided to kick off a price war, offering discounts to customers and ramping up production. The decision has come after talks between OPEC and non-OPEC countries – led by Russia – collapsed on Friday. WTI is trading below $30, down some 30% after falling on Friday. The Saudis originally wanted to prolong and deepen oil production cuts in the wake of the coronavirus crisis. 

Stock markets in Asia are plunging with Japan's Topix entering a bear market – 20% down from the peak – and US eMini S&P futures pointing to a 5% plummet. 

In economic data, Japan's final Gross Domestic Product saw a downgrade to -1.8% for the fourth quarter, worse than initially reported. The eurozone Sentix Investor Confidence is set to turn negative in March. Friday's US Non-Farm Payrolls figures for February – that beat expectations with 273,000 – have faded into the background. 

Cryptocurrencies lost ground over the weekend, with Bitcoin falling below $8,000.

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 remains pressured after US data misses estimates

EUR/USD has rocked and rolled in response to US consumer data. The Federal Reserve's critical meeting is in the spotlight. Mid-September's daily chart is painting a mixed picture. The FX Poll is pointing to short-term falls and a bullish trend afterward.

EUR/USD News

GBP/USD trades under 1.38 amid on UK data, dollar strength

GBP/USD is on the back foot, trading under 1.38 after UK Retail Sales figures disappointed with -0.9% in August, worse than expected. Brexit uncertainty and dollar demand weighed on the pair earlier. 

GBP/USD News

Gold bears in driver's seat as focus shifts to FOMC

Gold started the week in a relatively calm manner and continued to fluctuate in the previous week’s horizontal channel on Monday. Gold's technical outlook turned bearish following Thursday's sharp decline. Next target on the downside for XAU/USD is located at $1,730.

Gold News

Experts say Ripple will win SEC lawsuit, which might propel XRP to new all-time highs

The latest development in the ongoing SEC vs. Ripple lawsuit is that documents are classified as privileged and blocked for public viewing. Though institutional investors are yet to take big bets on the altcoin in 2021, retail investors are actively trading in XRP.

Read more

Central Bank fest

In terms of central bank meetings, the week ahead is one of the busiest.  No fewer than 13 central banks hold policy meetings, divided between six major and seven emerging markets.  While the significance of US monetary policy for the world makes the FOMC meeting a highlight.

Read more

Forex MAJORS

Cryptocurrencies

Signatures