Feb 19, 2020
Forex Today: Fears ease, dollar keeps running
Here is what you need to know on Thursday, February 20th:
- Chinese authorities reported that the pace of contagion outside the Hubei province has slowed, leading to a better market mood. The dollar and gold, both considered safe-haven, retained their strength. China keeps taking measures to support the economy throughout the outbreak.
- The EUR/USD pair settled below 1.0800 after reaching 1.0781, a new 2020 low. EU data missed the market’s expectations while US figures were upbeat, again highlighting the economic imbalances.
- UK inflation was better than expected but was not enough to keep the Pound afloat. GBP/USD neared 1.2900 on dollar’s strength.
- In the Brexit front, the 27 EU member states were unable to agree on the definition of a level playing field, the degree of UK alignment that Brussels will require from London for easy market access.
- AUD/USD flirts with multi-year lows ahead of the release of Australian monthly employment data.
- Global equities closed in the green, with the S&P and the Nasdaq reaching record highs.
- Gold flirted with yearly highs, with spot hitting $1,610.90 a troy ounce. The bright metal holds nearby heading into the Asian session.
- Crude oil prices hit their highest in three months. The US has announced its decision to impose new sanctions on Venezuela by blacklisting a subsidiary of Russian state oil major Rosneft, spurring concerns about a shrinking offer.
- Cryptocurrencies hold on to Tuesday’s gains, BTC/USD consolidating around 10,100.