US dollar
Despite the rising death toll and new coronavirus cases reported in China, the support measures implemented by Beijing have reassured investors. As a result, the Asian equities edged back towards a three-week high amid a better market mood while S&P 500 futures also gained 0.25%.
However, the US Treasury yields traded modestly flat, which left the US dollar broadly subdued, still close to multi-month highs. In currency markets, USD/JPY remained supported around 109.85 levels amid growing Japan’s recession risks and upbeat risk tone. Meanwhile, EUR/USD attempted a corrective bounce on the 1.08 level while GBP/USD traded almost unchanged around 1.3050 amid thin trading conditions on account of President’s Day in the US.
On the commodities’ front, oil prices steadied amid fading hopes of an emergency OPEC+ meeting this month and ahead of the US weekly crude stocks data. Gold held near a two-week high, as uncertainty prevailed over the economic impact of the virus outbreak amid implementation of the US-China phase one trade deal.
The EUR economic docket remains relatively quiet amid an absence of the first-tier macro releases. Therefore, the coronavirus updates led risk sentiment will continue to remain the main market motor while the focus will also remain on the USD dynamics.
However, the Eurozone Construction Output data and German Buba monthly report will also offer some incentives to the EUR markets. There is nothing much of note to report in the NA session, as the US are closed in observance of their respective national holiday.