Week Ahead: Coronavirus Contagion In Focus

The US caucuses and primaries take a back seat next week; however, the Nevada caucuses are this Saturday, February 22nd. Next weekend is the South Carolina primary on Saturday, February 29th. Candidates will be gearing up this week for the Super Tuesday on March 3rd when 15 primaries will be held! In addition, Super Tuesday will also be the first of the primaries which will have Michael Bloomberg’s name on the ballot. 

Earnings season is just about over, however, take note of BIDU and JD this week as these 2 Chinese companies may provide lower guidance and discuss their outlook on the coronavirus. 

Expected economic highlights include:

Monday

  • New Zealand: Retail Sales Q4
  • Germany: IFO Business Climate Feb

Tuesday

  • Germany: GDP Q4 Final
  • US: Consumer Confidence Feb

Wednesday

  • Crude Oil Inventories

Thursday

  • New Zealand: Trade Balance Jan
  • New Zealand: ANZ Business Confidence Jan
  • EU: Business Confidence
  • EU: Consumer Confidence
  • US: GDP 2nd estimate Q4
  • US Durable Goods Orders Jan

Friday

  • Japan: Unemployment Rate Jan
  • Japan: Industrial Production Jan
  • Japan: Retail Sales Jan
  • Germany: Unemployment Change Feb
  • Germany: Inflation Rate
  • Canada: GDP Q4
  • Canada: PPI Jan
  • US PCE Price Index Jan
  • Core PCE Price Index Jan

Saturday, February 29th

  • China: NBS Manufacturing PMI Feb
  • China: Non-Manufacturing PMI Feb

Chart to Watch: Daily Gold

(Click on image to enlarge)

Source: Tradingview, FOREX.com

What a massive 4% move on the week for the precious metal! But can it continue? Technically, price is trading beautifully, as it broke out of a flag pattern in December and paused at the 127.2% Fibonacci extension level from the September 3rd high to the November 12th low near 1588. Price then formed a symmetrical triangle at that level, only to bust higher this week and continue on its path toward the larger flag target near 1720. Price may pause as the RSI is overbought and diverging, however, if stocks continue to sell off next week, funds may continue to flow into gold and push price higher. 

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