The broad dollar index (DXY) observed strong bidding Monday, largely on sterling’s demise, in which the index settled just south of 98.00. Also bolstering the USD was an overall solid ISM Manufacturing PMI reading.
Friday’s mixed Eurozone data, released in early European hours, was largely overlooked. EUR/USD bulls strengthened their grip on the back of a softer buck. The spread of the coronavirus continues to dominate market sentiment. Downgrades to the Fed’s assessment of private consumption and inflation target also contributed to the US dollar index (DXY) selling.
The Bank of England left UK interest rates on hold. The Bank also cut its growth forecasts and downgraded its expectations for productivity growth, in a sign that the UK economy has suffered from Brexit uncertainty.
Global Markets: Asian Stock Markets : Nikkei down 1.72%, Hang Seng down 2.94%, ASX down 0.33% Commodities : Gold at $1580.35 (+0.63%), Silver at $17.64 (+0.86%), Brent Oil at $58.13 (-1.32%), WTI Oil at $52.65 (-1.28%) Rates : US 10-year yield at 1.562, UK 10-year yield at 0.521, Germany 10-year yield at -0.400 News & … Continue reading Thursday 30th January: Coronavirus continues to dictate markets.
Cable marginally firmed in US trade following the Federal Reserve keeping its benchmark interest rate steady, lifting price north of the key figure 1.30 on the H4, Quasimodo support at 1.2988, as well as a 78.6% Fibonacci retracement at 1.2884.
