Mar 17, 2020
Forex Today: Trump and the Fed poured some cold water
Here is what you need to know on Wednesday, March 18th:
- The American dollar stands as the strongest at the end of the day, initially supported by continued demand for the greenback, amid risk-off. The US government announced multiple measures to fight against the ongoing crisis, bringing relief to markets. Wall Street closed in the green, Treasury yields bounced, and the dollar gave up some ground, still the overall winner.
- The coronavirus keeps spreading in Europe exponentially, staying as the epicentre of the outbreak. Italy is expecting the peak by the next weekend. The EU has closed borders for 30 days. The run to safety is not yet over.
- UK PM Johnson, in a joint statement with Finance Minister Sunak, declared that they must “do more and faster,” to stop the disease spreading and to no not overwhelm the health system. Pound recovered modestly with the news, although GBP/USD settled below 1.2100 after trading as low as 1.20.
- EUR/USD fell below 1.1000, ending the day nearby, while commodity-linked currencies were the worst performers. Crude oil prices plummeted with WTI trading at $26.70 a barrel by the end of the day.
- The USD/JPY recovered, settling just below 108.00 a major Fibonacci resistance level. Gold also bounced amid easing dollar’s demand.
- Crypto Today: Bitcoin must hold $5000 this time or face much punishment from bears