Here is what you need to know on Monday, March 16: The market mood remains damp with stocks sinking at safe-haven assets such as the dollar, yen, and gold – rising toward $1,550 – in-demand despite additional surprising action from central banks. The moves come in reaction to coronavirus, which is taking a growing human and economic toll. S&P futures hit the 5% down limit, and even Bitcoin struggled. The rush to dollars reflects the risk of the financial system. Coronavirus in Europe: Spain and has entered a state of emergency, France slapped severe restrictions, and several European countries closed borders as mortalities rise rapidly in the old continent. The global number of deaths tops 6,000. Coronavirus in the US: Additional cities and states announced the shutdown of public spaces while the CDC recommended disallowing gatherings of more than 50 people. President Donald Trump declared an emergency late on Friday. Cut to zero: The Federal Reserve announced the second unscheduled rate cut in less than two weeks, this time by 100 basis points to 0%. It also introduced $700 billion worth of bond and mortgage-based securities buying, reminiscent of the financial crisis. It also announced a dollar swap line with five other central banks and other measures, just ahead of the market open on Friday. President Donald Trump that had been reportedly mulling demoing Fed Chair Jerome Powell, said he is happy with the move. See Fed Quick Analysis: Panic move exposes the financial system’s vulnerability, USD buying opportunity? Other central bank action: The Bank of Japan also brought forward its rate decision and announced it is enhancing its bond-buying scheme yet refrained from reducing the already negative interest rates. The Reserve Bank of New Zealand was the first out of the gate with a surprise reduction in borrowing costs, all the way to 0.25%. The Bank of Canada slashed rates by an additional 50bp late on Friday, in coordination with the government. Economic downfall: Chinese industrial output plunged by 13.5% in January and February, fixed investment by 24.5%, and retail sales by 20.5% in devastating figures that show the impact of the outbreak on the global economy. Global airlines are slashing staff, Apple closed stores outside China, and other sectors such as tourism have come to a standstill. Fiscal stimulus: Finance ministers of the Group of Seven are set to hold a conference call later in the day to coordinate further action and ways to maintain the global economy together. Trump was reportedly reluctant to give the go-ahead while German Chancellor Angela Merkel is pessimistic. EUR/USD is trading just above 1.11. EU finance ministers will also hold a call on coronavirus to discuss the closure of borders and also economic aid after Germany ditched its strict approach to debt spending amid the extraordinary situation. The European Central Bank added to its QE program and introduced a new lending scheme last week. GBP/USD is attempting a recovery after a massive sell-off on Friday amid the rush to the dollar. The UK has taken a different approach to battle the disease, basically allowing the virus to spread to reach “herd immunity.” The government is contemplating asking people over 70 to stay at home. AUD/USD has dropped to the lowest in 17 years as the Reserve Bank of Australia is set to follow the RBNZ with rate cuts and perhaps also QE. Oil prices have also tumbled down, due to the potential for falling demand and the ongoing price war between Saudi Arabia and Russia. WTI Crude is at the $30 handle. USD/CAD is on the rise. Cryptocurrencies are on the back foot due to the broad sell-off, with Bitcoin tumbling below $5,000. 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 Coronavirus update: Russia closes its border with Belarus; New York, LA shuts bars and restaurants FX Street 2 years Here is what you need to know on Monday, March 16: The market mood remains damp with stocks sinking at safe-haven assets such as the dollar, yen, and gold – rising toward $1,550 – in-demand despite additional surprising action from central banks. The moves come in reaction to coronavirus, which is taking a growing human and economic toll. S&P futures hit the 5% down limit, and even Bitcoin struggled. The rush to dollars reflects the risk of the financial system. 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