Forex Today: Risk aversion fuels dollar’s advance

Here is what you need to know on Tuesday, January 28th:

• On Sunday, the Chinese Health Commission reported that the coronavirus transmission ability is getting stronger and that infections could continue to rise. Financial markets reflected the concerns related to the virus outbreak, with safe-haven assets gapping higher. The dollar appreciated against most major rivals but those considered a refugee in turmoil times.
• EUR/USD neared 1.1000 as the German IFO Survey missed the market’s expectations in January, combining with the broad dollar’s strength.
• GBP/USD peaked at 1.3105 but eased ahead of critical events in the UK later this week. The BOE will meet on Thursday, and there are chances that Governor Carney may cut rates before leaving his seat. Brexit is scheduled for this Friday.
• The Japanese yen was the strongest, the AUD the weakest in a risk-averse environment.
• Gold gapped higher and held on to gains, finishing the day around $1,580 a troy ounce.
• Crude oil prices were also under pressure, ending the day at 3-month lows amid dollar’s strength, fears of an oversupplied market.
• Crypto Today: Bitcoin bulls break back above critical $8500 barrier