Coronavirus was walking in Italy, and if the same happens with Germany and France, stock and foreign exchange markets will be in the stress zone. EURUSD The pair has not yet reacted to the news, with the related, but it is for the time being as it seems.
The problem is that the increase in the incidence of the virus in Italy, whose economy can not cope with the effects of quarantines and restrictions for tourists and business, may ultimately lead to a deterioration of the credit rating of the country, too. This will further complicate the cooperation of Italy and the European Union that the euro will not be happy.
Further spread of the virus, in Germany and France, can limit the EURUSD pair in a pinch. In fact, talking about individual cases of disease, no panic here, but precautions are required to take power, emotional snowball reverberate in the currency sector.
Japan - the next in the list of risk on the road coronavirus movement. Now there is not more than 160 confirmed cases of disease, and they dispersed in different prefectures. To prevent Japan diseased population growth will need to focus on prevention, which will require funding. Certain restrictive measures in daily life can affect the stability of the business, which later can become an additional factor of pressure on GDP.
We have to admit that the issue of the coronavirus and its impact until more fears about the future: how the quarantine measures commonly affect the financial performance of companies and countries. All figures quoted are now for the consequences illustrations are approximate, but it can not unnerve investors.
If the virus really come to France and Herman Theological , EURUSD could move to 1.0700.
EURUSD forecast today Alpari