While China’s Wuhan coronavirus outbreak remained a major focus last week and triggered much volatility. But overall, stocks investors seemed not too bothered, with US indices continuing record runs. Other major markets are mixed only FTSE and Nikkei ended the week lower only. Gold closed higher but is well short of 1600 handle. WTI crude oil also recovered after repeated testing 50 handle.

In the currency markets, weakness in Euro is overwhelming. A major concern is that the coronavirus outbreak could kill the already weak Eurozone recovery early. In particular, the export-led German economy could face renewed recession risks. There were also some speculations that ECB could be forced to cut interest rate cut in the latter half of this year. Upcoming February PMI released from Eurozone could reveal how far sentiments were hurt. Weakness in Euro also dragged down Swiss Franc. While Dollar index extended recent rise, the greenback actually ended as the third weakest together with Yen.

source_https://www.actionforex.com/