After two days of silence, the issue of the coronavirus is again on the agenda.
On Tuesday, the US Fed cut the key interest rate by 0.5% thus encouraging market participants. However, on Thursday, futures on the US indices showed a decline. Besides, the US dollar lost ground against the yen and the franc.
A rapid spread of the coronavirus disease is the main threat to the global economy. At the moment, cases of the virus have been confirmed in 66 countries. There are over 12 000 infected people outside China. A number of infected people is increasing by 20% a day. The virus outbreak was mainly registered in South Korea, Italy, and Iran. Moreover, Iran does not have enough resources to combat against the disease.
EUR/USD: the pair is likely to resume the upward movement and hit 1.1246.
Buy positions can be opened from the 1.1100 level.
