XE Morning Update

The NZDUSD opens at 0.6385 (mid-rate) this morning.

Coronavirus headlines continue to take centre stage in the absence of any notable economic data releases.

Global equity markets along with risk-linked currencies remain under pressure and appear poised for another fall amid rising concerns over the severity of the coronavirus outbreak. As of this morning the number of infected has risen above 40,600 with the death toll now at 910. The UK’s National Health department are now classifying coronavirus an “imminent threat” to public health, and have announced new measures in an attempt to combat the spread of the virus. The announcement comes after the number of confirmed cases in the UK doubled from 4 to 8 overnight.

Gold prices are at 4-month highs and the USD and JPY continue to outperform as investors flock to safe-havens. Global oil prices have fallen more than 20% from their January peak ,and continue to weaken as demand wanes.

With Fed Chair Jerome Powell set to testify on the Semi-annual Monetary Policy Report in the early hours of tomorrow morning we expect currencies to continue to trade within tight bands.

Global equity markets are mixed, - Dow +0.14%, S&P 500 +0.27%, FTSE -0.27%, DAX -0.15%, CAC -0.23%, Nikkei -0.60%, Shanghai +0.51%

Gold prices are marginally higher, up 0.4% trading at $1,576 an ounce. WTI Crude Oil prices are lower again, down 2.0% at 49.55 a barrel.

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