Trading Plan – Monday 24th February 2020: Markets wake up to COVID-19 pandemic threat, strongly risk-off
Events and Calendar
The week was dominated by fears over the coronavirus situation in China, with first cases seen in France and the US.
The GBP was boosted by a favourable CBI survey.
AUD boosted by good employment numbers but not enough to counter sentiment-driven downwards pressure.
Indecisive until Thursday when sentiment deteriorated into the weekend, being strongly risk-off by Friday.
CAD weakened on a dovish RBC, ending the week down despite mounting a small recovery before the Friday close.
USD and JPY strengthened on risk sentiment.
AUD and NZD fell over the week on risk sentiment.
EUR breached previous low.
Markets have taken fright at the spread of COVID-19 outside of China. We are strongly risk-off on Monday morning. It’s a relatively light economic calendar so I suspect sentiment will rule market moves more so than ever.
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