The spreading coronavirus and its consequences have brought new uncertainty to a global economy that was already showing some signs of improving momentum. In this environment, the USD will remain supported, according to analysts at Nordea. Key quotes “The Corona virus and continued weak Chinese figures will likely keep USD/CNY elevated until sometime during Q2. This is generally good news for long USD positions against EUR, AUD, GBP (etc) as well.” “We see a strong USD against most currencies in our forecast until at least mid-year. The Corona virus is more of an issue for the EUR than the USD given that the EUR is closer linked to world trade.” “The Wuhan virus also increases the risk of a trade war 2.0 (since China simply cannot comply with the deal due to current shutdown), which we decide to reflect in 2021 forecasts through a lower EUR/USD forecast than seen earlier.” “Our main market take away is that the US outperformance narrative will likely stay intact, since e.g. Germany is relatively worse off than US due to the Chinese close-down. This also leaves us in the upper part of the USD smile during Q1 and into Q2. USD stronger for longer.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street Expert score 5 Etoro - Best For Beginner & Experts0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 5 Read Review Open My Free Account Your capital is at risk. FXStreet News share Read Next EUR/JPY breaking higher – Commerzbank FX Street 2 years The spreading coronavirus and its consequences have brought new uncertainty to a global economy that was already showing some signs of improving momentum. In this environment, the USD will remain supported, according to analysts at Nordea. Key quotes “The Corona virus and continued weak Chinese figures will likely keep USD/CNY elevated until sometime during Q2. This is generally good news for long USD positions against EUR, AUD, GBP (etc) as well.” “We see a strong USD against most currencies in our forecast until at least mid-year. The Corona virus is more of an issue for the EUR than the USD… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
