Forex Today: Turn-up Tuesday? Dollar, stocks bouncing, Gold down, after coronavirus-related plunge

Here is what you need to know on Tuesday, February 25:

Markets: S&P futures are on the rise after a massive sell-off in markets on Monday, with some indexes suffering the biggest daily drop in two years amid coronavirus fears. Investors are taking profits on US bonds, yet the ten-year Treasuries are still around the lows of 1.40%. Gold prices have dropped below $1,650 after hitting a seven-year high of $1,690. Oil prices are also attempting a recovery after the downfall on Monday. 

See Gold may top $1,800 as coronavirus in Italy propels market panic – Interview with Kathleen Brooks

Currencies: Lower US bond yields sent the dollar down on Monday, with EUR/USD recovering to 1.0850, GBP/UDS recapturing 1.29, and USD/JPY dropping below 111. Most of the dollar's losses are sustained into Tuesday. 

Fed response: Bond markets are already pricing in two rate cuts this year with the first one coming in June. Lauretta Mester, President of the Cleveland branch of the Federal Reserve, has said she is monitoring markets but sees no substantial damage to the US economy so far. Narayana Kocherlakota, a former dovish Fed member, has said the bank should cut rates immediately. 

US economic events: Robert Kaplan and Richard Clarida of the Fed will be speaking today. Several housing figures are of interest, and the Conference Board's Consumer Confidence gauge stands out. 

See US Conference Board Consumer Confidence: Steady as the labor market goes

Coronavirus: The number of infections has surpassed 80,000. While most deaths cases are in China, Italy remains in the spotlight as the death toll climbs to seven with 50,000 people under lockdown. A Korean Air confirmed that a cabin crew member has tested positive as the number of cases in the country continues climbing. The World Health Organization declined to declare the respiratory disease a global pandemic for now. 

Cures?: A new experimental trial by Gilead has been rushed in China while researchers in the US and Japan are also working on potential remedies. 

Brexit: Andrew Haldane, member of the Bank of England, has said the uncertainty has mostly cleared around Brexit, but that does not mean imminent investment. 

Cryptocurrencies are on the back foot, with Bitcoin trading around $9,500. Ranges have somewhat narrowed.