US dollarThe market mood remained cautious, as the worries over the coronavirus spread returned after the hotspots on both sides of the Atlantic reported a rise in the new cases. As a tepid sentiment seeped back, the US dollar extended the overnight bounce against its six majors peers, despite the gains in the Asian equities and US stock futures.
Within the currency markets, USD/JPY consolidates the downside moves below 109.00, as the yen drew bids from on the economic impact of Japan’s state of emergency. Among the European currencies, EUR/USD dropped back below 1.0850 as the US dollar was bid on haven demand while the GBP/USD headed south towards 1.2300.
Oil prices staged a solid comeback on increased odds of output cuts by the OPEC+ on Thursday. Meanwhile, Gold prices regained the $1,650 mark.
Wednesday’s EUR macro calendar is a thin showing, with nothing of relevance and therefore, the coronavirus statistics from across Europe and the UK will drive the market sentiment.
The NA calendar also lacks the first-tier US macro updates with only the EIA Crude Stocks data at 14:30 GMT offering some trading incentives ahead of the US FOMC March 15 meeting’s minutes release at 18:00 GMT. The market would look for any clues on the central bank’s thinking, especially considering last month’s emergency rate cut and QE announcements.
Meanwhile, oil price action alongside the dollar dynamics will be also closely eyed ahead of Thursday’s OPEC+ meeting.