Forexlive Americas FX news wrap: Volatile up and down day as traders digest news/value/risk
Forex news for NY trading on February 26, 2020.
- Norway announces first coronavirus case
- Bitcoin tries to hold near 200 day MA support him him him
- The front end is pining for Fed cuts
- WTI crude oil futures settle at $48.73
- Oil is crumbling: WTI falls below $49 and keeps falling
- NY Gov. Andrew Cuomo: 27 possible virus cases explored, all came back negative
- SNBs Maechler: SNB is ready to intervene
- US treasury auctions $41 billion of 5-year notes at high yield of 1.15%
- Nestle suspends all business travel for 300,000 employees
- FDA official warns the COVID-19 virus is on the "cusp" of being a pandemic
- German health minister: We are at the beginning of a coronavirus epidemic
- UPDATE: White House spokesperson says it is not mulling a coronavirus czar
- White House is considering appointing a coronavirus czar
- DOE weekly crude oil inventory 0.452M versus 2.6M estimate
- Barnier: EU ready to offer UK super preferential access to EU markets
- US Senate Minority Leader Schumer ups the budget proposal for the coronavirus
- ECB Lagarde: Level of trust in euro is critically important
- The CHF is the strongest and the GBP is the weakest as NA traders enter for the day
Today saw more up and down activity as a result of the mixed signals from the coronavirus. Whereas, the numbers of infected seem to have peaked in China, the numbers around the world are moving higher.
The question now is how entrenched is a virus outside of China, and the impact economically. If the virus does take off even more in Europe and the US, and schools are closed, people quarantined, the service economy shuts down, the US economy could be hit hard. At the moment however, the risks still seem limited.
Nevertheless, in the New York session, the market got a scare when Nassau County in New York reported that there was 83 possible candidates being monitored for the virus. Minutes later, the New York governor said there were 27 possible virus cases being explored. Is it 83, or is it 27, or is it some other number? If the US officials are trying to be transparent, they are not being too successful. This evening at 6:30 PM ET, Pres. Trump will will hold a press conference with the CDC. The president was angered by the CDC press conference yesterday where officials said that "it was not if but when" that the virus took off within the US borders.
Regardless, the news helped send stocks into the red after being higher for most of the day. However by the close, although the S&P and the Dow industrial average closed in the red, the NASDAQ recovered and eked out a modest gain. Below are the ranges and closes for the major indices in both North America and Europe. Whereas in Europe the indices closed near session highs (after moving lower first). In the US, the major indices close near session lows after moving higher.
In other markets, a snapshot is showing:
- Spot gold up $9 at $1644.25. The high price reached $1605. The low price extended to $1624.98. The price of gold moved down to test the low price from yesterday at the 1625 area, but bounced higher as fear in the US increased
- WTI crude oil futures is having trouble rallying. The price is currently trading at $48.78, not far off the settlement level of $48.73. The price is trading down $1.12 or -2.22% on the day. The declines come despite a lower than expected build in inventories of 452K versus 2600K estimate. For crude oil, is hard to ignore the economic impact should large numbers of the global population stay home, even if it is only temporary.