The month long bullish narrative in gold is still intact. The trend is still up so focus on finding value instead of the next bullish headline.
Coronavirus outbreak in South Korea and Italy, gave boost to the two main safe heaven currencies on the market: CHF and JPY.
Based on the early price action and the current price at 99.235, the direction of the March U.S. Dollar Index the rest of the session on Tuesday is likely to be determined by trader reaction to the pivot at 99.200.
Investing.com - The yield on the U.S. 10-year Treasury note hit its all-time low in morning trading Monday as worries about the spread of the coronavirus from China continued to push money away from risk and into safety like bonds.
More than $1 trillion was erased from global stock markets on Monday as coronavirus cases spiked outside of China, fanning fears around the prospects of a pandemic and slowing global growth.
The British pound saw a firm bid in early trading on Tuesday and GBP/USD is seen approaching the 1.3000 handle after crossing above notable resistance at 1.2961.
The next few days could be critical as to determining whether the Japanese Yen is still a safe-haven asset. Monday’s price action certainly supports the case for those who believe it is still a safe-haven. U.S. stocks plunged and the Japanese Yen rose sharply.
The AUD/USD is in no position to change the main trend to up, but a trade through Friday’s high at .6639 could fuel further short-covering.
EUR/USD has recovered higher after finding a bottom late last week, however, the upward momentum appears to have slowed near an overhead resistance level.
It’s back into the red for the majors. Heavier losses could be on the cards should the majors fail to move through key levels by the early afternoon.
Riskier assets find early support on a relatively quiet day on the economic calendar. U.S consumer confidence numbers will garner plenty of attention.
Gold markets rallied significantly during the trading session on Monday, reaching towards the $1700 level as coronavirus continues to spread in multiple countries.
The US dollar has initially gapped lower to kick off the trading session on Monday, but then turned around to fill the gap. After that, the market broke down below the ¥111 level.
The British pound is trying to recover against the US dollar, as we have seen a little bit of pressure against the greenback later in the day. That being said, the market looks as if it is trying to hang on to the 1.29 handle.
The British pound gapped lower to kick off the trading session on Monday, turned around to fill that gap, and then broke back down again.
The Euro gapped lower during the open on Monday but has turned around to show signs of life again. Ultimately, I think that it’s only a matter of time before value hunters come in and pick up the US dollar “on the cheap.”
The Australian dollar has gapped lower to kick off the week, as we continue to have a lot of coronavirus fears out there, only to see the market rally and fill that gap. The fact that we are broken down below the bottom of a hammer it does suggest further weakness.