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Forex Today: Coronavirus surpasses SARS, Trump's impeachment gets interesting, Fed in focus

Here is what you need to know on Wednesday, January 29:

Coronavirus: The respiratory disease has already infected 5,974 people, surpassing that of SARS in 2003 as the death toll hit 132. The US and Japan have evacuated citizens out of Wuhan and Starbucks closed all its cafes in China. While the news grabs the headlines, the effect on markets is diminishing. USD/JPY is settling above 109 and Gold is below $1,570.

Impeachment trial: Mitch McConnell, the leader of the Republican majority in the Senate, has reportedly admitted that he is unable to stop the summoning of witnesses. Several of his colleagues want to hear what former adviser John Bolton has to say, potentially revealing explosive evidence of undoing by President Donald Trump. Investors may tune in.

Federal Reserve: The world's most powerful central bank is set to leave interest rates unchanged in its first decision of 2020 and after cutting borrowing costs three times in a row. The recent signs of an inversion in the yield curve is one of the topics on the agenda.

See 

  • Fed Preview: Five things that will determine the dollar's direction
  • Federal Reserve Preview: Stable policy and an uncertain future

US data: Ahead of the Fed, US data has been mixed. While the Conference Board's Consumer Confidence gauge beat expectations with 131.6 points in January, Durable Goods Orders missed on core figures with the nondefense ex-aircraft figure falling by 0.9%.

Australia: Consumer Price Index rose by 0.7% quarterly and 1.8% yearly, both above expectations. Alongside the upbeat jobs report, the chances that the Reserve Bank of Australia cut rates are low. 

Cryptocurrencies have been holding onto high ground, with Bitcoin surpassing $9,300 and Ripple above $0.24.

 

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