EUR/USD: Run out of steam ahead of 1.0900 mark
Broad-based USD weakness helped EUR/USD to gain some traction on Tuesday amid Fed rate cut speculations and a slump in the US bond yields. Coronavirus concerns kept a lid on any further positive move beyond 1.0900 mark, Haresh Menghani of FXStreet reports.
“The uptick, also marking its fourth day of a positive move in the previous five, was primarily sponsored by some renewed US dollar selling since the early US trading session.”
“Worries that the potential impact on global growth from the Novel coronavirus will be worse than expected further fueled speculations that the Fed would cut interest rates sooner rather than later and exerted some additional downward pressure on the greenback.”
“The Richmond Fed Manufacturing Index dropped to -2 February as compared to the consensus estimates pointing to a pullback to 13 from the previous month's reading of 20. Adding to this, the Conference Board's Consumer Confidence Index also fell short of market expectations and came in at 130.7 from the previous month's downwardly revised reading of 130.4 (131.6 reported earlier).”
“There isn’t any major market-moving economic due for release on Wednesday, either from the Eurozone or the US. Hence, market participants will keep a close eye on the latest developments around the coronavirus saga, which will continue to play a key role in producing some meaningful trading opportunities.”