Financial Market Participants Are Focused on the Chinese Coronavirus. We Expect the Bank of Canada Meeting

The US currency fell slightly against a basket of major currencies. The dollar index (#DX) closed in the red zone (-0.07%). Investors' attention was focused on the outbreak of coronavirus in China yesterday. However, the Chinese authorities assured the population and the international community that they had taken large-scale measures to prevent viral shedding. This has improved the sentiment of financial market participants. It should be recalled that the outbreak of pneumonia was recorded in China in December, the previously unknown coronavirus became the causative agent.

The winner of yesterday's trading was the British pound, which rose against the US dollar. The British currency was supported by optimistic data on the UK labor economy. The average salary rose in November by 3.2%, while experts expected growth by 3.1%. Initial jobless claims fell in December and counted to 14.9K instead of the forecasted value of 22.6K. Today, the Bank of Canada will announce its interest rate decision. It is expected that the regulator will keep the key marks of monetary policy at the same level.

The "black gold" prices are declining. Currently, futures for the WTI crude oil are testing the $57.95 mark per barrel.

Market Indicators

Yesterday, there was the bearish sentiment on the US stock market: #SPY (-0.20%), #DIA (-0.49%), #QQQ (-0.04%).

The 10-year US government bonds yield has declined. At the moment, the indicator is at the level of 1.77-1.78%.

The Economic News Feed for 22.01.2020:
  • - Core consumer price index in Canada at 15:30 (GMT+2:00);
  • - Existing home sales in the US at 17:00 (GMT+2:00);
  • - Bank of Canada interest rate decision at 17:00 (GMT+2:00).

by JustForex, 2020.01.22

We advise you to get acquainted with the daily forecasts for the major currency pairs.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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