Forex Signals Brief for Jan 28: Coronavirus Hits Risk-Assets
Rowan Crosby • 2 min read
US Market Wrap
The outbreak of coronavirus across the globe continues to be the main theme at the moment.
Up to 80 people have now reportedly died, while there are now five reported cases in the US. The sentiment has been weighing heavily on US equity markets with the SPX and other major equity indexes all suffering sharp falls.
While the safe-havens such as GOLD keep on getting bid up strongly. From the forex pairs, it is the key risk assets such as the AUD/USD that are feeling the brunt of the fear in the air and that doesn’t appear to be slowing down anytime soon.
There is once again very little on the agenda today in terms of economic data, but even if there was we are still really focused on sentiment and news as the key drivers this week.
Core Durable Goods numbers will be out in the US session, while earnings season is also getting underway in the US with a host of big-name stocks set to report.
Over the next few days, there will be some interest in the BOE and FOMC, but for the most part, we sit and wait on updates on the coronavirus outbreak and whether that gets worse before it gets better.
Forex Signal Update
The FX Leaders Team finished with 1 win from the 1 trade in the NZD/USD.
USD/CHF – Active Signal
The USD/CHF signal continues to move sideways, despite the coronavirus being the key theme at the moment. We remain long here looking for that bounce to come.
EUR/CHF – Active Signal
The EUR/CHF continues to fall away as money is flowing out of risk assets such as the EUR. We still have room so we will let this one play out.
BTC has been on the charge in the last 24 hours and has reclaimed the $9,000 resistance level.
As I was saying yesterday, I felt that we might see lower volumes with Chinese participants not involved, but nevertheless price has spiked.
We saw this same move only weeks ago and the first test of this level failed. Watch closely on the first pullback as that will likely tell us a big story.