Risk jumps on reports of more positive developments in the coronavirus saga


Risk trades soar across the board on the initial headlines


USD/JPY jumped from around 109.40 to 109.72 before settling close to 109.60 as risk trades moved higher across the board after the above reports on the coronavirus situation.

US Treasury 10-year yields spiked from 1.575% to 1.639% and is keeping around 1.623% currently, higher by 2.4 bps after the more tepid start to the trading day.

Meanwhile, European equities have also turned higher with major indices posting decent gains while US futures are also up by ~0.5% now after having been down by ~0.2%.

For USD/JPY, this brings back the key resistance region of around 109.50-70 and buyers will need to break above that to look towards a potential move back above 110.00.

As for the virus headlines, I’m still reserving some skepticism. Not in terms of a scientific breakthrough to cure the virus, but in terms of how this can all be transmitted effectively to control the virus and prevent a mass outbreak.

The fact is that unless there is some near-term breakthrough that can prevent China from stopping their lockdown and also alleviate growing fears surrounding global trade and travel, there is still reason for the risk rally to potentially falter.

An outright cure/effective treating method helps with that, but how is the ease of access going to work here? Does every medical center have the ability to treat this as easily as it treats the common cold? Are we ready to accept the potential for the new coronavirus to be a “common” disease among humanity?

Articles You May Like

How to Trade rsi and bollinger bands forex trading strategy/double bollinger band best strategy
Accurate forex trading system settings – best forex system download – Forex EA trader
EURUSD moves back toward swing area
The battle for working-class votes will reverse the secular decline in inflation
MY FREE TRADING SYSTEM WITH MADIBA OF FOREX: Explaining How The system Works || Forex Trading 🤖🤖📉📈