Fundamental Analysis

The last week of January was quite shaky for the markets, as the news on coronavirus pushed investors to buy safe-haven assets and Treasuries and selling the risky assets.

Coronavirus is the theme of the day. How does it affect the gold price? What are the long-term consequences and how to trade it?

Last month was mostly driven by market sentiment. The beginning of January was highlighted by the geopolitical crisis between the US and Iran. After the markets calmed down, the coronavirus that appeared at the end of 2019 spread causing depreciation of the risky assets and appreciation of the refuge assets.

Finally, it happened: on January 31, 2020, the UK officially left the European Union. It was a long way since June 2016 when the Brexit referendum took place. Many things have changed. Nevertheless, it’s not the end yet.

The Federal Open Market Committee is meeting today at 21:00 MT time.

This time, the coronavirus has affected not only China but the whole market sentiment. Let’s figure out why this has happened.

The sideways trading of USD/CAD may be finally over after the meeting of the Bank of Canada at 17:00 MT time.

In times of political and economic uncertainties, analysts recommend investing in safe-haven assets. However, since recently, the USD with the weak American economic data and the easing monetary policy has been losing its status. What about the JPY and XAU? The situation is unclear.

This week brought various economy news releases related to GBP. What is the layout of the British pound?

Read the opinion by Morgan Stanley and ANZ on the performance of AUD in Q1

On Thursday, EUR/USD will be driven by the economic releases in Europe and the United States.

What if the market uncertainties prevail and the risks of the recession renew? The central banks should have more opportunities to stimulate the economy. However, low rates for most of the central banks and negative for some of them mean the banks are at the edge.