By Deepta Bolaky
The focus remained on the coronavirus on Wednesday. It was a volatile session as investors assessed the updates of the virus to gauge the economic impact. It is the first time since the outbreak that new virus cases in other countries are reportedly more than China.
Major US equity benchmarks traded mixed as the uncertainties around the virus are weighing on an already fragile global economy.
In the FX space, major currencies were mixed against the US dollar. The shared currency was the best performer among the G10 currencies while the Aussie dollar and the Pound emerged as the weakest.
US Dollar Index
The US dollar index is holding on to the 99 levels as caution ripped through markets. Despite a weaker greenback, the index is currently trading around 2019 highs.
US Dollar Index (Daily Chart)
Source: GO MT4
The Aussie dollar is struggling to recover from lows. A series of bearish factors are fuelling the selling pressure:
The AUDUSD pair is trading at an 11-year low at 0.6550.
AUDUSD (Monthly Chart)
Source: GO MT5
Oil prices fell further as demand concerns triggered by the virus risks override better-than-expected weekly oil reports. As of writing, WTI and Brent Crude were trading in the $48 and $52 levels.
UKOUSD and USOUSD (Hourly Chart)
Source: GO MT4
Gold trading sideways around the $1,650 level as traders await for fresh trading impetus. A fragile environment continues to prevail in the financial markets which are helping the precious metal to remain in elevated levels.
XAUUSD (Hourly Chart)
Source: Bloomberg Terminal
BoJ’s Kataoka Speech (Japan)
Durable Goods, Core PCE, Gross Domestic Product, Jobless Claims and Pending Home Sales (US)
Current Account (Canada)
Consumer Confidence and Total Filled Jobs (New Zealand)
|Friday, 28th February 2020|
Indicative Index Dividends
Dividends are in Points
Disclaimer: Articles and videos from GO Markets analysts are based on their independent analysis. Views expressed are of their own and of a ‘general’ nature. Advice (if any) are not based on the reader’s personal objectives, financial situation or needs. Readers should, therefore, consider how appropriate the advice (if any) is to their objectives, financial situation and needs, before acting on the advice