Investors Concerned About Coronavirus Impact

The US dollar is stable against currency majors. The dollar index (#DX) closed yesterday with a slight increase (+0.10%). The Chinese virus is still in the focus of attention. The spread of Covid-19 outside of China is of great concern to investors. Analysts believe that coronavirus will affect the economy of most countries, and the Fed may cut interest rates. Demand for the "safe haven" currencies has resumed again.

Countries around the world are stepping up efforts to prevent a pandemic, while the number of infected has exceeded 80,000. In South Korea, an outbreak of coronavirus was recorded among members of the religious movement, so the authorities intend to check 200 thousand members of this movement. The US promised to allocate $2.5 billion to fight the disease due to the rapid spread of the virus outside of China. The European Commission, in turn, allocates 232 million euros to counteract the spread of coronavirus, as well as calls on the international community to cooperate.

The "black gold" prices are consolidating after a significant fall the day before. Currently, futures for the WTI crude oil are testing the $51.25 mark per barrel.

Market indicators

Yesterday, there were aggressive sales in the US stock market: #SPY (-3.32%), #DIA (-3.51%), #QQQ (-3.86%).

The 10-year US government bonds yield declined. At the moment, the indicator is at the level of 1.35-1.36%.

The Economic News Feed for 25.02.2020:
  • - CB consumer confidence index in the US at 17:00 (GMT+2:00).

by JustForex, 2020.02.25

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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