Daily analytics from the forex broker Fibo Group
Coronavirus: Blood Bath
The virus is rapidly spreading: 1995 confirmed cases in China (this morning), 31- in other countries, including two cases in the USA. In the morning, confirmed 1 case #Canada. In the #Russia so far there are no confirmed cases.
The negative impact on the economy is no longer in doubt: Chinese cities are blocked, the inevitable deepest failure in the transport industry, a general decrease in the level of business activity. There is a risk that force majeure circumstances will reduce China’s desire to fulfill the stringent obligations of a trade deal with the #USA (many of these obligations seemed impossible to many). As a result, pressure on commodity prices, capital outflows from developing countries.
Avoiding risks at the end of the week has already become pronounced and in the near future can only intensify.
How to trade on coronavirus?
The strategy is simple - buy #dollars and #gold.
Dates - all current week.
Last time, a similar case provoked a 10% correction on all world sites within two weeks. however, subsequently for 3-4 months #prices recovered. This is the model we take for the base scenario.