Coronavirus Is Spreading Outside of China

On Friday, the US dollar fell against a basket of major currencies. The dollar index (#DX) closed in the negative zone (-0.59%). This week, investors will follow the statements by Fed officials. Richard Clarida, Fed Vice Chairman, will speak at the Washington DC Economic Policy Conference on Tuesday, at which International Monetary Fund's Chief Economist, Gita Gopinath, and President of Federal Reserve Bank of Cleveland, Loretta Mester, will also give a speech. Financial market participants monitor any news and announcements about the coronavirus.

On Saturday, financial officials from the 20 largest economies in the world called for a coordinated response to the outbreak of coronavirus. The International Monetary Fund (IMF) forecasts that coronavirus will reduce China's GDP growth this year to 5.6% and reduce global GDP by 0.1%. On Sunday, China reported a decrease in the number of new cases again. However, there was an increase in cases in other countries. Thus, 160 new cases of the disease were recorded in South Korea, currently, more than 760 cases were registered, in Italy – more than 150 cases, and in Iran – 43.

The "black gold" prices are declining. Currently, futures for the WTI crude oil are testing the $51.35 mark per barrel.

Market indicators

On Friday, there was the bearish sentiment in the US stock market: #SPY (-1.03%), #DIA (-1.04%), #QQQ (-1.92%).

The 10-year US government bonds yield fell sharply. At the moment, the indicator is at the level of 1.38-1.39%.

The Economic News Feed for 24.02.2020:
  • - German IFO business climate index at 11:00 (GMT+2:00).

by JustForex, 2020.02.24

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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