https://www.forexsource.co/usd-catches-a-case-of-coronavirus/?inf_contact_key=a0dd75af010b07e2d54acc55308ee957cc0558ed5d4c28cbfab114022b1ec50d

It seems like the USD caught a case of Coronavirus last week as it lost ground against most of it's counterparts. Further escalation risks more aggressive policy action from the Fed.

ARNO VENTER

Coronavirus fears and Fed rate cut expectations saw the USD weaken across the board against most of its major counterparts.

The Dollar remained pressured throughout the week despite a much better than expected ISM Services PMI and NFP data.

This week’s forward-looking sentiment-based indicators like the NFIB Small Business Index and the University of Michigan’s Consumer Sentiment will give us the first look at post-virus confidence.

US bond and equity markets will also be in focus as the US 10-Year yield hit record low levels and equity markets continue to grind lower as the VIX reach levels last seen during the Global Financial Crisis.

This week ahead video will help you prepare for this week’s upcoming event and provide insights into how you could possibly trade it as well.

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Highlights of the video:

00:26 – Baseline context for the currency 

02:09 – Baseline expectations for the upcoming risk event

04:02 – Possible sentiment shifts

08:23 – Possible currency pairs to consider