FX.co ★ Evening review 02/10/2020 EURUSD. Virus - or US economy?

EURUSD: Hold sales from 1.0990, stop 1.1035, target 1.0890

Markets at a crossroads: strong optimism about the US economy is pushing markets to grow - however, a long overdue correction in the US market has a tempting reason - a virus epidemic in China.

Yes, the virus is positive - the huge efforts of the Chinese authorities to combat the epidemic have had an effect. China said that the number of new infections in all provinces, except the most affected, is declining. That is, it was possible to localize the epidemic within China. But the number of cases still grows, and the rate does not fall below +10% per day.

We are waiting for the reaction of the markets.

P.S. Who buys US stock at such high prices? Growth is going on at low volumes - the main investments are not in stocks, but in bonds - of those companies that have high chances to survive the new crisis if it happens in the coming year.