Everything in the world repeats itself. Vladimir Vysotsky even sang "the Hong Kong flu has been defeated..." - and here, at the beginning of 2020, the flu virus from China threatens humanity again...
On Monday, January 27, the US market finally reacted sharply to the virus - the S&P500 index fell by 1.5%.
Oil fell heavily a few days ago as well.
So far, the markets are still hoping that the Chinese authorities will be able to stop the spread of the epidemic. But in any case, markets are beginning to prepare for the worst. It is already clear that a large epidemic in China (if it happens) will cause huge damage to both China and the world.
In other aspects, the market is also waiting for news on the US in the evening (orders for durable goods), and the Fed's decision on Wednesday, January 29.
EUR/USD:
Keep selling from 1.1084.
Selling from 1.1050 is possible.