Forex Today: Coronavirus Cools Mood, NFP Faces, Ripple Ruge
This is what you need to know to operate today Wednesday, February 5:
Coronavirus: The markets returned to pay attention to respiratory disease that has already infected some 25,000 people and has killed almost 500. Companies like Nike have warned about the economic impact. The markets have turned back down after ignoring concerns earlier this week. Gold and yen are recovering.
Oil: The “black gold” is still under pressure, as Russia refuses to support new production cuts, contrary to what is requested by Saudi Arabia. Chinese demand is expected to decrease substantially due to coronavirus. US inventory data They can move to the WTI from the $ 50 zone.
See Coronavirus: The 5 main safe haven assets to buy in times of trouble in 2020
The GBP / USD has stabilized around 1.30 after reaching a new six-week low on Tuesday. The fears of a Brexit without trade agreement still hover over the pound sterling, while recent data has shown an improvement. The latest index of Markit purchasing managers for the service sector is in the spotlight.
The EUR / USD remains pressed near 1.10 amid the strength of the dollar. Today the final services PMIs will be published and Business.
New Zealand: The Kiwi dollar has risen after the South Pacific nation reported a drop in the 4% unemployment rate, better than expected.
The US ADP private sector employment report For January it could show a more moderate increase in positions after a robust December. The indicator serves as a clue to Friday’s nonfarm payrolls.
See ADP employment report forecast: Reactivation by the commercial agreement?
The ISM non-manufacturing PMI will also provide information on the US employment report and shed light on the important service sector. It is expected to maintain around 55, which would reflect solid growth.
US Policy: The partial results of the Iowa assemblies of the Democratic Party have shown a tight race between moderate Pete Buttigieg and leftist Bernie Sanders. The odds of billionaire Michael Bloomberg winning the nomination have increased, while those of former Vice President Joe Biden has declined. President Donald Trump praised the strength of the US economy in his speech on the state of the Union, which was seen as a campaign speech.
Cryptocurrencies: Ripple’s XRP has stood out with substantial gains, reaching $ 0.27. Ethereum is also going up, trading around $190, while Bitcoin is stable around $9,200.