The US dollar is declining relative to a basket of major currencies. The dollar index (#DX) closed in the red zone (-0.48%). Demand for the US dollar has fallen significantly, but for the "safe haven" currencies has grown amid the spread of coronavirus. Thus, the Japanese yen increased to a monthly high against the US currency. Hopes that the outbreak of coronavirus can be contained within China have faded since the infection has spread throughout the world. Now financial market participants are almost certain that the US Federal Reserve will cut its base interest rate next month. Global stocks could record the maximum weekly decline since the financial crisis in 2008, as the spread of infection raised concerns about the economic recession in the US and the EU.
In addition, optimistic economic data from the US were published yesterday, which nevertheless could not support the US dollar. So, core durable goods orders increased by 0.9% in January instead of the expected growth by 0.2%. GDP (q/q) grew by 2.1% in the 4th quarter, which met the forecasts. Pending home sales index grew by 5.2% in January, while experts forecasted 2.2%.
The "black gold" prices have continued to decline. Currently, futures for the WTI crude oil are testing the $45.95 mark per barrel.
Market indicators
Yesterday, there were aggressive sales in the US stock market: #SPY (-4.49%), #DIA (-4.54%), #QQQ (-5.01%).
The 10-year US government bonds yield has fallen sharply again. At the moment, the indicator is at the level of 1.20-1.21%.
- - Report on the labor market in Germany at 10:55 (GMT+2:00);
- - Canada’s GDP data at 15:30 (GMT+2:00).
by , 2020.02.28
We advise you to get acquainted with the daily forecasts for the major currency pairs.This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.
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