Global stocks are in the red as market participants continue to worry about covid-19. In Asia-Pacific, the Shanghai, Hang Seng, and Nikkei dropped by 0.80%, 1.82%, and 2.34% respectively. In the United States, futures tied to the Dow and S&P500 dropped by 1.57% and 1.52% respectively. The reason for the decline is that the disease appears to be spreading internationally. Almost 800 cases have been confirmed in South Korea while 152 cases have been reported in Italy. Almost 50 people have tested positive in Iran. In China, more than 2,400 people have died and more than 79k have died. In a statement, Xi Jinping said thar the disease was a ‘crisis and a big test.’

The New Zealand dollar declined by 35 basis points in response to the fears of covid-19. It also dropped on mixed economic data. According to the RBNZ, retail sales rose by 0.7% in the fourth quarter. This was a slower growth than the third quarter’s 1.6%. Sales rose by a smaller number than in the fourth quarter of the previous year. On a positive side, credit card spending increased by 3.7%, which was better than the previous 3.5%. Later this week, we will receive trade numbers from the country. The numbers are expected to show a slowdown in trade in the first month of the year.

The focus today will be on the covid-19 disease. This is what most traders will be thinking about. In addition, we will receive survey data from Germany. Data from the Ifo Institute is expected to show the business climate in February declined to 95.3 to 95.9. The current assessment is expected to have declined from 99.1 to 98.6 while business expectations are expected to have declined from 92.9 to 92.2. These numbers will come at a time when Germany is going through a political crisis.

- advertisement -

EUR/USD

The EUR/USD pair declined from Friday’s close of 1.0869 to a low of 1.0820. This price is along the important support line shown in yellow below. The price is below the 14-day and 28-day exponential moving averages. The RSI has moved from a high of 78 to the current 42 on the 30-minute chart. The pair may fall further as market participants move to the US dollar, which is being considered as being a safe option.

XAU/USD

The XAU/USD pair jumped to an intraday high of 1678.70. This is the highest it has been in more than seven years. The price is above the 14-day and 28-day exponential moving average. The momentum indicator is above the 100 level. The Bulls Power has continued to rise. The pair may continue to rise as traders rush to safety.

XBR/USD

The XBR/USD pair dropped by almost 3% during the Asian session. This is because demand for crude oil is expected to ease as coronavirus spreads. Reports show that China has been on a lockdown this year. The price reached an intraday low of 56.00, which is the lowest level since February 13. The price is below the 50% Fibonacci Retracement level on the hourly chart. The price is also below the 14-day and 28-day EMA. The price may rise slightly later as it attempts to fill the gap created earlier today.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.