Forex Today: Coronavirus fears are prominent, dollar remains dominant, Non-Farm Payrolls eyed
Here is what you need to know on Friday, February 7:
Markets: The US dollar has been holding onto its gains as tension mounts ahead of the US jobs report. The greenback is rising on robust US data, and as somewhat receding fears from the coronavirus are pushing US yields higher. EUR/USD and GBP/USD hit new 2020 lows while USD/JPY reached 110.
Non-Farm Payrolls: The economic calendar is pointing to an increase of 160,000 jobs, but realistic expectations are probably higher after robust figures from ADP and ISM earlier this week.
- Nonfarm Payrolls Preview: Get ready for some action this time
- US Non-Farm Payrolls January Preview: Indications turn positive
Coronavirus: The number of cases tops 31,000 and with over 600 fatal cases. A ship moored close to Tokyo is the center of attention as more passengers have been tested positive for the respiratory disease. Toyota factories in China will remain closed for longer than anticipated while US and Chinese presidents affirmed their commitment to upholding the Phase One trade deal. More Coronavirus: What we have learned from several weeks of market action
After Germany reported a plunge in factory orders in December, its industrial output figures and those from France are of interest today.
The pound continues struggling amid fears of a no-trade deal Brexit and risks to the City of London's financial services sector.
AUD/USD was on the back foot as Phillip Lowe, Governor of the Reserve Bank of Australia, spoke again. Lowe said that the weak exchange rate is a result of rate cuts and that the bank considered slashing borrowing costs.
Oil prices have stabilized and are awaiting the verdict from Russia regarding oil cuts. A joint OPEC-non-OPEC committee recommended reducing 600,000 barrels per day to combat the price fall resulting from the coronavirus.
Canada also reports its job figures, and a modest increase in positions is on the cards for January after a leap of 35,200 in December. See Canada Net Change in Employment January Preview: Is this the month?
Gold prices have picked up from the bottom, recovering from the sell-off earlier in the week.
Cryptocurrencies have extended their rise, with Bitcoin edging closer to $10,000 and Ethereum topping $215.