Home Daily Commentaries US Equities in Bear Market Territory, U.S. Dollar Strong Against the G10 Currencies

US Equities in Bear Market Territory, U.S. Dollar Strong Against the G10 Currencies

Daily Currency Update

USD - United States DollarU.S. stock markets suffered their worst falls since 1987 yesterday, dropping around 10 percent, leading to U.S. markets being temporarily being closed in New York for the second time this week. Soon after the bell rang in New York, the market fell by 7 percent, triggering the "circuit breaker," leading to a 15-minute pause in trading. It extended its losses; however, it didn't hit the 13 percent drop, which would have signaled another 15-minute break. European bourses didn't suffer any better with both France and Germany's main index's ending more than 12 percent lower. Trump's flight embargo saw stocks in travel companies and airlines decline sharply. The move was not aided by the European Central Bank decision to keep rates unchanged despite promising to extend its Quantitative Easing program. Many market participants were expecting a cut in either its primary financing or its deposit rate to stimulate the economy; however, with rates already so low, there is little wriggle room for the ECB to move.

Key Movers

Thankfully this morning some sort of calm appears to have been restored with China only reporting eight new cases of coronavirus overnight hopefully proving some sort of guide to how long this crisis will rumble on in the wider world. All Asian markets finished in the green and European stocks are all up too as the panic seen throughout the week eases. USD/JPY is up to 107.02

Expected Ranges

  • EUR/USD: 1.1097 - 1.1221 ▲
  • GBP/USD: 1.2454 - 1.2624 ▼
  • USD/CAD: 1.3781 - 1.3946 ▲
  • AUD/USD: 0.6265 - 0.6325 ▼
  • NZD/USD: 0.6106 - 0.6160 ▲