Listen to the market mood for today’s session.
The S&P500 took a -4.89% loss in yesterday’s trading as the World Health Organisation declared the coronavirus outbreak a global pandemic. Asian equity markets also registered heavy losses with falls of over 4% in the Nikkei and over 3% in the Hang Seng.
- The strong currencies for this session are the JPY and the CHF as they are bid on safe-haven flows.
- The weak currency for the session is the CAD as this is being sold off on risk-off flows and the recent falls in oil prices as Saudi Arabia declares an ‘oil price war’ after Russia failed to agree to production cuts of 1.5mln barrels.
- Therefore, expect CADJPY sellers on pullbacks.
- Risks to this outlook: Watch out for any positive news about the Coronavirus spreading to change this outlook and any good news on Saudi Arabia and Russia striking a future oil agreement.