Coronavirus Fears Return, Preliminary PMIs Take Center Stage

Markets Turn Risk-off as Virus Cases Return to Acceleration Mode

The dollar continued trading higher against most of the other G10 currencies on Thursday and during the Asian morning Friday. It gained the most versus NZD, AUD and JPY in that order, while it slightly underperformed only against CHF. The greenback was found virtually unchanged versus EUR.

Nasdaq 100 — Technical Outlook

Yesterday, the Nasdaq 100 index took a strong beating, which led to a price-drop back to its key support area, between the 9508 and 9526 level, marked by yesterday’s and February 18 th’s lows respectively. In the end of the day, the index managed to stay above that support zone, which may now become a key territory to watch. A break lower may help consider a deeper correction to the downside. Our oscillators started pointing lower, suggesting further declines, at least in the near term. However, let’s not forget that overall, Nasdaq 100 is still balancing above a short-term tentative upside support line drawn from the lowest point of December, so any move lower, for now, could be classed as a temporary correction.

GBP/JPY — Technical Outlook

After hitting the 144.60 hurdle yesterday, which is also the highest point of January, GBP/JPY retraced back down slightly. Such price action confirms that the pair is currently stuck in a wide short-term range, roughly between the 140.83 and 144.60 levels. The the yen still looks weak and thus we will take a somewhat bullish approach for now, but in order to get slightly more comfortable with higher areas, a break of the upper bound of the range would be required.

Preliminary PMIs on Investors’ Radar

As for today, the spotlight is likely to fall to preliminary PMIs for February, as investors are sitting on the edge of their seats in anticipation of finding out whether and how much did the coronavirus hurt the global economy.

As for the Rest of Today’s Events

Apart from the PMIs, from the Eurozone, we also get the final CPIs for January, but as it is always the case, they are expected to confirm their initial estimates, namely that the headline CPI rate ticked up to +1.4% yoy from 1.3% and that the core one slid to 1.1% from 1.3%.

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