USD/JPY, Gold, Oil Talking Points
- While a jolt has been felt through economic data around Coronavirus, a bit of optimism showed overnight when China announced a slight slowing in the spread of the virus.
- This has helped to lift risk markets around-the-globe, illustrated in Oil[1] prices moving up to fresh two-week-highs.
- Fear remains, to be sure, as economic impact is still being calculated. Japan saw a big miss in machine orders (-3.5% v/s -1.2% expected) and this has helped USD/JPY[2] to break-out to a fresh eight-month-high.
Gold Spikes Up to Seven-Year-High: Can Bulls Continue to Drive?
A scenario of extremes have started to build through a number of macro markets. The highlight and likely garnering the most attention this morning is the breakout in Gold prices[3] as the yellow metal has moved up for a test of the seven-year-high that was set in January. I had looked into this backdrop on Friday, investigating a bullish breakout pattern in Gold that had built ahead of the weekend[4]. But after that holiday weekend in the United States, that breakout has continued to run and price action has moved right up to that same point of resistance that held the highs last month.
Gold Eight-Hour Price Chart
At the source of these extreme moves has been a dose of fear emanating from the spread of Coronavirus. At this point, impact has been seen in a number of economies, including near-by Japan and Hong Kong, both major market centers that are critical in the operation of the global economy. This economic pressure produced by fear around Coronavirus has already impacted China’s economic data, and last night more proof showed up that this impact is
