Feb 11, 2020
Forex Today: Sentiment improved a little, safe-havens eased
Here is what you need to know on Wednesday, February 12th:
- Demand for the dollar eased, but its decline was limited. The shared currency remained under selling pressure, extending its 2020 decline against the dollar to 1.0890. EUR/USD closed with modest gains at around 1.0920.
- The GBP/USD pair advanced for a second consecutive day, despite UK data failed to impress and as Brexit-deal jitters remain. The UK economy didn’t grow in the last quarter of 2019, while Industrial Production fell in December.
- Central bankers failed to impress investors. Fed’s Powell, ECB’s Lagarde and BOE’s Carney testified on monetary policy in separated events but didn’t announce changes to the already known monetary policy stances.
- Safe-haven assets eased, as despite extending in China, the coronavirus outbreak seems contained within the country. The number of new cases reported decreased, while the WHO said a vaccine could be ready in around 18 months. A modest light of hope which anyway didn’t change the background picture.
- Gold prices edged lower, with the bright metal affected by the better performance of equities.
- Crude oil prices edged lower after the EIA lowered its 2020 crude output forecast to 13.2mbpd from 13.3mbpd.
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