Daily Currency Update
USD - United States DollarThe EUR/USD pair trades at 1.0799 at the time of this writing, representing a fall of 0.34 percent, but it touched an intraday low of 1.0792 a few minutes ago. The Greenback got boosted after weakened global risk sentiment that followed Apple Inc. saying that its quarterly sales would miss forecasts due to the economic impact of the coronavirus. The U.S. dollar and Japanese Yen typically advance positively in this environment. The USD/JPY pair trades in a range of 109.66 and 109.79. House Speaker Nancy Pelosi warned of Beijing’s global telecommunications ambitions, saying Chinese operator Huawei Technologies Co. must be prevented from controlling the next generation of wireless networks.
Key Movers
The negative mood set the week off to a negative start when the Head of the International Monetary Fund, Kristalina Georgieva, said the lack of more significant improvements in the global economic system is hindering what’s already an “anemic” outlook for growth. The Euro received negative news this morning after German ZEW data missed expectations, as the adverse effects of the coronavirus weigh on manufacturers outside of China. The ZEW survey expectations came in at 10.4 versus the 25.6 expected, diluting optimistic expectations of an improvement in the European economy. However, technically speaking, the EUR/USD pair is very close to a long-term support level at this moment, which is a “gap” formed back in April 2017. This price gap is formed between 1.0777 and 1.0818 and it represents a key support. At the same time, the EUR/GBP pair holds a technical support at around 0.8275. Hogan repeated that the European Union would work within current mandates on a U.S. deal and added it would be “substance over speed” in talks with the U.S. Regarding the relationship with the U.K., he said the E.U. is looking for a level playing field with the U.K. The pound rises 0.3 percent following the release of U.K. job creation data in the fourth quarter, despite political turmoil over Brexit. According to the Office for National Statistics, the jobless rate came in at a four-decade low of 3.8 percent and the claimant count rate came in at 3.4 percent versus the 3.5 percent last month. The strength of the labour market suggests there might not be a rate cut by the Bank of England this year. The cable bounced to 1.3049, coming from an intraday low of 1.2971 earlier, as market participants added exposure to the Sterling. It accelerated its bounce after U.K. Chancellor Rishi Sunak said he is preparing to deliver the budget as planned on March 11th.
Expected Ranges
- USD/CAD: 1.3250 - 1.3277 ▲
- EUR/USD: 1.0790 - 1.0820 ▼
- GBP/USD: 1.3014 - 1.3050 ▲
- AUD/USD: 0.6660 - 0.6700 ▼
- NZD/USD: 0.6378 - 0.6419 ▼