Coronavirus Hits the Market, Situation in Europe and US

Coronavirus Hits the Market, Situation in Europe and US

The number of infections from the coronavirus is around 130,000. The number of cases is somewhere 5,000. The epicenter of the disease in Europe is Italy. The number of infections is 15,000, with fatalities of 1,000. Meanwhile, China, where the virus originated, is reporting fewer deaths and cases. The world’s second-largest economy states retail, industrial, and sales output figures for February on Monday.

The University of Michigan’s preliminary Consumer Sentiment gauge for March might provide insights on how Americans feel as the disease is spreading. The several economic figures seemed stale amid the rapid development of events.

There is ongoing pressure on oil prices and the report that Prime Minister Justin Trudeau is in self-isolation after his wife tested positive for coronavirus. Thus, the USD/CAD hit 1.39 at one point.

As Russia is also ramping up output, responding to Saudi Arabia’s price war, oil prices remain under pressure. After a modest recovery, WTI is around $32.

Coronavirus

Meanwhile, the British government has refrained from severe restrictions. Prime Minister Boris Johnson told the nation in a somber address that many will lose their loved ones. GBP/USD succumbed to the dollar’s strength and is trading below 1.26. Moreover, because of the coronavirus, Brexit talks have been suspended.

After falling below 1.11 on Thursday, the EUR/USD traded around 1.12.

It seems that elsewhere in Europe, leaders are beginning to get their act together. French President Emmanuel Macron told the nation that Covid-19 is the epidemic of the century. Also, he explained the move to shut down schools in Europe’s second-largest economy. Meanwhile, German Chancellor Angela Merkel said that now we have extraordinary times, which might require abnormal steps. For instance, extraordinary measures might include finally accepting suspending the debt brake. Also, she added that up to 70% would be infected.

It is the leading news for now in the international foreign exchange market.

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