{"id":165481,"date":"2020-02-25T08:58:20","date_gmt":"2020-02-25T13:58:20","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=165481"},"modified":"2020-02-25T08:20:43","modified_gmt":"2020-02-25T13:20:43","slug":"sentiment-drops-on-international-covid-19-cases","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2020\/02\/sentiment-drops-on-international-covid-19-cases\/","title":{"rendered":"Sentiment Drops On International COVID-19 Cases"},"content":{"rendered":"
February 25, 2020<\/div>
\r\n<\/div><\/div>

By <\/strong>Orbex<\/strong><\/a><\/p>\n

Investors sought the safety of safe-haven assets, selling the risk-heavy equities.<\/p>\n

This came amid an increase in the Coronavirus cases outside of China. Besides some Asian countries, Europe is also being affected.<\/p>\n

This led to an increase in\u00a0safe-haven assets<\/a>\u00a0such as gold and US Treasuries.<\/p>\n

German Business Confidence Improves in February<\/strong><\/h2>\n

Business confidence in Germany, as measured by the Ifo institute saw modest improvement. For February, the business climate index rose to 96.1 during the month. This was up from a revised 96.0 in January.<\/p>\n

The data underlined the fact that German businesses were unaffected by the impact of the virus outbreak. It also signaled a modest increase in the business sentiment from December.<\/p>

\r\n
\r\n

Free Reports:<\/p><\/div>\r\n

\r\n

<\/a>\r\n\t Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p>

\r\n
\r\n
\r\n

<\/a>\r\n\t Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p>

\r\n<\/div>\r\n

\r\n
<\/div>\n

EURUSD Attempting to Rebound<\/strong><\/h3>\n

The common currency is posting some modest gains into Monday\u2019s close. This comes as the US dollar takes a pause in its rally.<\/p>\n

With the Stochastics now showing possible renewed momentum, we expect that the EURUSD will maintain the upside bias for now. As long as the price level of 1.0839 holds, the next upside target is 1.0897.<\/p>\n

\"\"<\/a><\/p>\n

Oil Drops as Investors Expect Lower Demand<\/strong><\/h2>\n

Crude oil prices are trading weaker, down over 5% on Monday. The declines come on the back of newly reported cases on the virus outbreak. The economic impact is expected to hit demand for crude oil.<\/p>\n

As a result, oil prices pared gains and are trading weaker.<\/p>\n

Crude Oil Loses the Support<\/strong><\/h3>\n

Oil prices plunged sharply, losing the support level of 51.65. This will push price action lower to retest the support at 50.00. A retest of this handle will likely stabilize the declines.<\/p>\n

However, there could be scope for further declines. If oil prices bottom near 50.00, we expect to see a rebound taking place. But, under the current circumstances, this could take a while before prices turn bullish.<\/p>\n

\"\"<\/a><\/p>\n

Gold Surges on Flight to Safety<\/strong><\/h2>\n

The precious metal is up over 2% on the day. The gains were driven by investors bidding the safe-haven gold and other similar assets. This comes as France already reported a big drop in tourism.<\/p>\n

Investors are starting to assess the big impact the virus outbreak is causing on\u00a0various economies around the world.<\/a><\/p>\n

XAUUSD at 7-year High, Shows No Sign of Easing<\/strong><\/h3>\n

The precious metal touched a 7-year high on Monday as it hit 1689 before retreating intraday. The gains are driven by the investor fears of a widespread impact due to the virus outbreak.<\/p>\n

In the near term, any dips are likely to attract new buyers into the market. If there is a rebound, then we expect the XAUUSD to hit the 1700 handle in the near term.<\/p>\n

\"\"<\/a><\/p>\n

By <\/strong>Orbex<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By Orbex Investors sought the safety of safe-haven assets, selling the risk-heavy equities. This came amid an increase in the Coronavirus cases outside of China. Besides some Asian countries, Europe is also being affected. This led to an increase in\u00a0safe-haven assets\u00a0such as gold and US Treasuries. German Business Confidence Improves in February Business confidence in […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-165481","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/165481","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=165481"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/165481\/revisions"}],"predecessor-version":[{"id":165488,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/165481\/revisions\/165488"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=165481"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=165481"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=165481"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}