Forex Marketz Daily Forex News – Fully Markets Update
Crude oil futures contracts are falling this morning during the Asian trade session extending Wednesday’s steep losses. Traders are worried about the spread of the coronavirus, which is a respiratory virus and how that will affect demand for oil. At the same time, traders are digesting a rise in U.S. inventories.
The price of oil is trading near a seven week low this morning. As of 1:30 am GMT, the Brent futures contract is down $1.05 to trade at $62.16 a barrel. Earlier in the session, Brent was at its lowest price point since December 4 and it lost 2.1 percent on Wednesday.
U.S. West Texas Intermediate (WTI) crude oil futures fell 95 cents to trade at $55.78 a barrel. Earlier in the session the price of WTI was at its December 3 low price point. WTI lost 2.7 percent on Wednesday
The coronavirus has now killed 17 people since it emerged, late last year, in Wuhan. This potential pandemic is raising concerns of another Sudden Acute Respiratory Syndrome (SARS) epidemic could happen again. SARS was back in 2002-2003. That also originated in China and dented global travel and economic growth.
There are now more than 540 cases confirmed. Authorities in Wuhan have shut transportation networks. They are residents not to travel.
Crude Oil Traders wait on the ECB Monetary Policy Decision
The headline event on the global economic calendar is the monetary policy and rate decision from the European Central Bank.
The ECB is expected to stand firm with monetary policy and interest rates. Forex traders will monitor commentary during ECB President Christine Lagarde’s press conference.
The ECB will probably note the continuing threat of a trade war between the European Union and the United States. Yesterday, President Donald Trump said, in Davos, that he is ready to levy auto tariffs on the European Union if “they don’t make a deal that’s a fair deal.”
This could force the ECB to insulate the economy, with further non-standard monetary policy actions, sooner than they want.
