Forex Today: China tries to calm coronavirus-hit markets, dollar remains strong, Bitcoin battles $10,000
Here is what you need to know on Monday, February 10:
The coronavirus has already taken the lives of over 900 people and infected over 40,000. While the disease continues spreading, the People's Bank of China has announced fresh measures to provide liquidity via re-lending funds and soothe markets.
Chinese consumer inflation rose by 5.4% in January – the fastest in eight years and due to soaring pork prices– while producer prices advanced by 0.1%. Moreover, several factories in the mainland are returning to production, providing a semblance of calm.
Markets are mixed amid news of the outbreak and the dollar is consolidating its gains, with EUR/USD remaining close to 1.0950, GBP/USD around 1.29 and USD/JPY close to 110. US Non-Farm Payrolls showed an increase of 225,000 jobs in January, better than originally expected and wages rose by 3.1% yearly. Gold has stabilized around $1,570.
Oil prices are on the back foot as Russia seems reluctant to bring forward a meeting between OPEC and non-OPEC members. The country sees no urgent need to cut production despite a recommendation for a 600kbpd recommendation by the group's technical committee.
Eurozone Sentix Investor Confidence is set to show a drop in business sentiment. German and French industrial figures dropped sharply in December, in publications that weighed on the euro last week.
UK: Prime Minister Boris Johnson is planning infrastructure spending to fulfill election promises. The pound suffered from fears of a no-deal Brexit last week.
Michelle Bowman and Patrick Harker, two members of the Federal Reserve, will speak later today and comment on recent upbeat figures.
Cryptocurrencies have been extending their gains over the weekend with Bitcoin topping $10,000 and Ethereum advancing to $225.