U.S. Dollar Sold Heavily as Investors Fear Possible Coronavirus Crisis for Economies and Markets

The Dollar and Pound were deep in the red Thursday as investors appeared to be pricing-in a global coronavirus crisis that's already walloping stock and commodity markets and which could prompt a further unwinding of recent bullish bets on both currencies.

The Pound gained on the Dollar in what was a resilient performance from the British currency amid a global flight to safety on Tuesday as markets fixated on the continued spread of coronavirus outside of China including in Europe, and some analysts are suggesting that further gains are possible. 

The Pound has suffered another setback against the Dollar and now the technical outlook is all to play for although some fundamental analysts are suggesting the acrimonious tone of talks between the UK and EU could soon weigh heavier on Sterling. 

Some disappointing data out of the U.S. on Friday put the U.S. Dollar on the back foot against a host of currencies and took the shine off what has been a solid week for the Greenback.

Pound Sterling came close to doubling over against the Dollar this week but was spared from further imminent declines ahead of Thursday's closing bell, meaning the outlook for the Pound-to-Dollar rate is still all to play for.

The Pound-to-Dollar rate is at risk of an imminent technical breakdown that could soon take it back to levels not seen since October, as King Dollar continues its reign of supremacy and is tipped for more gains up ahead.

The Pound-to-Dollar rate is consolidating on the charts but it retains an upside bias and could still go on to test December's highs over the coming weeks, according to technical analysis from Commerzbank, although the British currency will need to achieve a daily close above 1.3102 in order to do so. 

The Pound-to-Dollar rate rose sharply last week and the charts are suggesting that further gains could be in the pipeline, although a raft of important economic figures will test the market's appetite for the British curency over the coming days.