USD, EUR, GBP AUD, Gold, Oil, Dow Jones & More – Weekly Forecasts as Coronavirus Grips Markets
The US dollar ripped to a 3-year high before pivoting lower as supply chain disruptions, largely due to the coronavirus outbreak, pushed business activity to a 76-month low.
Amid the deterioration in sentiment and rise in recession risk, spot gold prices spiked to a 7-year high while the stock market retreated from its record.
Meanwhile, a broader selloff in risk assets like crude oil and the Australian Dollar pushed the commodity and major currency pair markedly lower.
The coronavirus outbreak and it’s corresponding impact on global GDP growth outlook will likely linger as a key theme to watch over the coming trading sessions.
Take a look at the fundamental and technical forecasts below for detailed insight on what our analysts are expecting across the global market next week.
Gold might extend its advance – even after climbing to its highest level in seven years – as an inverted yield curve rekindles recession fears amid the ongoing coronavirus outbreak.
EUR/USD has been weakening since the start of 2020 and the decline has accelerated this month. At some point there will be a correction but further losses are still likely as the year progresses.
Crude oil prices may rise on supply-disruption fears after the outcome of the Iran election, but infected sentiment from coronavirus fears may derail Brent’s recovery ahead of the G20 summit.
The Australian Dollar remains severely weighed down by coronavirus worries and a lack of domestic data points will probably keep that story in the driving seat.
Last week saw stocks unravel as some of the globe’s major economies stumbled and coronavirus concerns rampaged. Will stocks continue lower in the week ahead?
The Mexican economy contracted for the first time in almost 10 years in 2019, but growth is expected to pick up in 2020 according to its finance minister.
The status of the US dollar as the safe-haven asset of choice remains untouched and any weakness in the greenback is likely to be short-lived.
USD/CAD is weaker for a second week with the Canadian Dollar building on the recent price reversal. Here are the levels that matter on the Loonie weekly technical chart.
FTSE 100 testing key support as the index lacks a directional bias. DAX reverses off channel top.
Gold prices soared towards the 2013 high in the best week since June 2019. The medium-term XAU/USD technical outlook is bullish. The week ahead will be scrutinized for signs of a top.
The Relative Strength Index (RSI) undermines the recent rebound in GBP/USD as the indicator continues to track the bearish trend carried over from December.