The coronavirus issue is again taking center stage, making an impact on trading sentiment. Investors are shocked by revised data which revealed a spike in the cases. A new diagnostic method enabled doctors to recognize almost 15,000 newly infected people. At the same time, the death toll climbed sharply to 1,310. Such a record rise aroused fears among investors about a threat to the global economy. Fed’s Chairman Jerome Powel also predicts the fallout from the epidemic. In the testimony before the House Financial Services Committee yesterday, the policymaker confirmed his concerns expressed a day ago. The fast-spreading coronavirus could disrupt the global economic growth, including the US economy. Amid risk aversion, the US dollar index is determined to reach the level of 100 points. The index closed the New York trade at 99.05. Analysts are betting on the greenback’s strength. Nevertheless, the US dollar is giving in against the Japanese yen. The safe haven yen is gaining ground, having nudged the dollar/yen pair lower to 109.80. Importantly, the growth rate of new coronavirus cases is waning, so the moves of currency pairs today is a short-term response of the market to the revised data under a new method. According to estimates in China, the deadly virus will be contained by March. So, stock indexes are expected to gain bullish momentum in the near future. In this context, the dollar/yen pair is likely to reverse upwards, aiming to break resistance at 110.10 and climb as high as 110.80. Amid the risk-off mood, the Australian dollar also halted its rally and retraced to 0.6710. Then, the currency pair rebounded. Analysts foresee a further rise to 0.6780. The aussie gained support from comments by Reserve Bank of Australia Governor Philip Lowe. He noted that the regulator does not find
it appropriate to force inflation into the target level. That’s all for now. We wish you profitable deals! See you on our channel with a view video in a couple of hours. See you later on InstaForex TV channel!