Feb 3, 2020
Forex Today: All eyes on RBA
Here is what you need to know on Tuesday, February 4th:
- An upbeat US ISM Manufacturing PMI saved the day for the greenback, although its gains were mixed across the board. EUR/USD edged marginally lower at around 1.1060.
- The Pound was the biggest loser Monday, amid fears the UK and the EU can’t reach a deal before year-end. UK PM Johnson said that the kingdom has made its choice, as they want a Canada-style deal, something the EU doesn’t seem to be able to grant.
- Coronavirus-related fears continue to dent the market’s mood. Chinese equities collapsed and dragged commodities lower, as the virus keeps spreading. WHO Chief, Dr. Tedros, reiterated that there’s no need for measures that unnecessarily interfere with international travel and trade, but the market is concerned about the outbreak harming global growth.
- Crude oil prices continued to be under pressure, with WTI falling below $50.00 for the first time in over a year, amid concerns of reduced demand.
- Gold finished the day in the red, despite fears persist but bounced off lows to settle at around $1,576 a troy ounce.
- RBA’s monetary policy decision taking center stage in the Asian session, AUD/USD barely above a multi-year low at 0.6670. The central bank is widely expected to keep rates on hold, Lowe’s words to set Aussie’s direction.
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