The price of crude oil declined as the market continued to worry about the new virus that is spreading in China and around the world. The price of gold, which is considered a safe-haven, also rose on these concerns. Over the weekend, the virus continued to cause fear and has so far killed 26 people. The virus has also spread to the United States, where a number of cases have been reported. The CDC has said that it was investigating 63 patients in 22 states. The risk for the market is that the disease could hinder transport and the overall global economy. Over the weekend, S&P Global warned that the disease will knock-off 1.2% off China’s economic growth.
US futures tanked today as the market reacted to the new virus. Futures tied to the Dow, S&P500, and Nasdaq declined by 240, 30, and 112 points respectively. The market is also gearing towards one of the busiest weeks of the month as most companies in the S&P500 are expected to report. Some of the biggest names that will report are Boeing, Apple, Amazon, Starbucks, eBay, Pfizer, Invesco, and Mondelez among others. The earning season so far, especially among banks, has been encouraging.
The economic calendar will be a bit light today. The biggest news will be from Germany and the United States. From Germany, the market will receive survey data from Ifo. The business climate index is expected to have risen from 96.3 to 97.0. The current assessment is expected to have improved from 98.8 to 99.2 while business expectations are expected to have improved from 93.8 to 95.0. These numbers are important as a measure of confidence among business executives. The market will also receive new home sales numbers from the United States. The sales are expected to have improved from 719k to 730k.
EUR/USD
The EUR/USD pair was relatively unchanged during the Asian session. The pair is trading at 1.1027, which is slightly above Friday’s low of 1.1020. The price is slightly below the 14-day and 28-day exponential moving averages. The signal line and histogram of the MACD is below the neutral price of zero. The pair may continue the ongoing downward trend ahead of the FOMC decision later this week.
XBR/USD
The XBR/USD pair declined sharply today as the market reacted to the coronavirus. The pair reached a low of 58.50. This was the lowest level since October last year. The price is along the lower line of the Bollinger Bands on the daily chart. It is also below the 14-day and 28-day exponential moving averages. The RSI has moved below the oversold level of 30. The pair may continue moving in this direction as it tries to test the important support of 55.00.
AUD/USD
The AUD/USD pair declined to a low of 0.6800. This was the lowest level since December 9. The pair has been on a downward trend since January 2, when it was trading at 0.7030. The price is below the 14-day and 28-day moving averages while the RSI has been moving lower. The price is trading along the lower line of the Bollinger Bands. The pair may continue moving lower as the market continues to watch the coronavirus.
