CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Daily summary: Coronavirus in focus once again

16:50 13 February 2020
  • Coronavirus fears hit the market sentiment
  • Stock indices launched a correction move
  • EURUSD plunged below 1.0850
  • EURGBP is trading near December lows
  • Headline price growth in the US accelerated to 2.5% YoY in January from 2.3% YoY in December

The markets are dominated by news from China today, moods in the Asian and European sessions were poor and the opening on Wall Street was also weak. US major indices started today’s session lower as the markets reacted to the increased number of confirmed cases of Coronavirus and higher death toll in China. In the first hours of trading the session is still negative but much of the decline has been recovered which could lead to believe traders weren't as affected by the news.

EURUSD is trading lower today, the declines extended after US data which showed the acceleration in headline price growth in the US. The pair plunged to almost 3-year low following a break below 1.0900. On the other hand one can see that GBPUSD is performing well, the pair broke above the psychological barrier at 1.30 USD.The pound is gaining after the resignation of the Chancellor the Exchequer Sajid Javid.

GBPUSD reached the resistance area at 1.3070 marked with the 61.8% Fibonacci retracement of the downward move started at the beginning of February and previous price reactions.The nearest support to watch is the lower limit of Overbalance structure (red rectangle). In case of a bigger correction buyers may also appear at 1.30 USD.

GBPUSD H1 interval. Source: xStation5

This content has been created by X-Trade Brokers Dom Maklerski S.A. This service is provided by X-Trade Brokers Dom Maklerski S.A. (X-Trade Brokers Brokerage House joint-stock company), with its registered office in Warsaw, at Ogrodowa 58, 00-876 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. X-Trade Brokers Dom Maklerski S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.

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