OPEC is thinking of an emergency meeting. Why is that?
Daily Market Analysis
Information is not investment advice
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?
EUR/GBP formed an interim bottom in the 0.8930 area and closed above the 50-day MA at 0.8490 on Monday.
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.
Last week EUR/NZD made a triumphant comeback to the upside. The pair rose above the 50- and 100-week MAs in the 1.7000/7025.
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.
S&P 500 met resistance at the 61.8% Fibo of the January 24-27 decline. The index is quite volatile these days offering traders opportunities to make profit.
The Federal Open Market Committee is meeting today at 21:00 MT time.
The meeting of the Federal Reserve at 21:00 Mt time will be the highlight of the day. There is a very high possibility that the event will make an impact on USD/JPY.
CHF/JPY has been declining since the middle of January. It went down, as the yen was the number one safe haven after the outbreak of the coronavirus in China.
AUD/USD broke through the most important daily moving averages, slipped below the support at 0.6830.