Safe haven assets dominate the European premarket

In the hours before European trading began, everything revolved around risk sentiment. Markets tend to avoid risky assets precisely because of fears and concerns about the escalation of new coronavirus infection.

The yen opened with a ruckus, and although it is inferior to the dollar in the European market, it remains the leading safe currency on the FX front. Gold and bonds also recorded significant increases. The Australian dollar, kiwi, along with stocks and oil are inferior.

So far, USD / JPY is holding just above the 109 level, which remains key for the currency pair.

Throughout the week, the risk factor will remain a major factor, but this week we have an extremely busy schedule with corporate reports. This will certainly have an impact on the risk as Wall Street will have to carefully weigh the data from the reports and at the same time listen to any news about the coronavirus.

In addition, we are expecting a FOMC and a BOE meeting this week

 Trader Martin Nikolov

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