Risk aversion trades are on as coronavirus fear accelerates.
As the coronavirus continues to progress with 81 confirmed deaths and thousands infected. the fear aversion trades are moving. The JPY and CHF are attracting buyers. the AUD and NZD are falling (they rely on China for import/exports). The USD is stronger with most of the gains vs AUD and NZD.
The trading ranges of the day are showing that the USDCAD, AUDUSD and NZDUSD is running above the average of 22 days. All those pairs are trading near the extremes for the day. The EURUSD on on the other end of the spectrum with only a 23 pip range. PS. Note the ranges do not include gaps. In reality the USDJPY has a range of about 56 pips. The EURJPY and GBPJPY range are only a few pips higher as although they gapped lower, they covered most of the gap in trading today (except a few pips).
In other markets:
- Spot gold is up $12.82 or 0.82% at $1584.30. The high price reached $1588.68 so far today on investor demand for safe haven
- WTI crude oil futures are down $1.72 or -3.17% at $52.47.
In the premarket for US stocks, futures are implying a sharply lower opening:
- Dow industrial average -476 points
- NASDAQ index -181 points
- S&P index, -53 points
In the European equity markets prices are also sharply lower:
- German DAX, -2.35%
- France's CAC, -2.2%
- UK's FTSE 100, -2.2%
- Spain's Ibex, -1.6%
- Italy's FTSE MIB, -1.71%
In the US debt market, the yields are moving lower with the 10 year down -7.1 basis points. The yield curve is flatter by nearly 2 basis points:
In the European debt market yields are also tumbling as traders move into more safe instruments:
