Daily Update - 4th March 2020
For the EUR, it’s a relatively busy day ahead on the economic calendar. Key stats include prelim Eurozone inflation figures for February and January’s unemployment rate. While the stats are of interest, sentiment towards monetary policy will continue to be the key driver. The markets are looking for a GFC style coordinated central bank response to the impact of the coronavirus on the global economy. For the Eurozone and the EUR, there was a double boost on Monday, with chatter of fiscal policy support from Germany also anticipated. This assuming, of course, that Germany delivers and Banks don’t sit it out for another month… For the Pound, it’s a relatively quiet day ahead on the economic calendar. February Construction PMI is due out this afternoon. Forecasts are Sterling negative, which could sink the Pound to sub-$1.27 levels as talks between the EU and Britain proceed. On the monetary policy front, the BoE may be off the hook this time around, which could give the Pound some much-needed near-term support. Across the Pond, it’s a quiet day ahead on the U.S economic calendar. There are no material stats due out of the U.S to provide the Greenback with direction. The lack of stats will leave sentiment towards monetary policy as the key driver on the day. The markets will be looking for an indication of when the FED will deliver. On the geopolitical front, it’s also Super Tuesday, with 34% of delegates up for grabs as the Democratic leadership race heats up. Following Biden’s South Carolina victory from the weekend and Buttigieg dropping out, there’s a lot more to play for. For Australian GDP, the economy gained 0.4% in Q3, little changed from the 0.5% gain in Q2. Another gain of 0.4% is expected in the fourth quarter. Eurozone Services PMI’s on Wednesday 8:15 for Spain, 8:45 for Italy, final French figure at 8:50, final German one at 8:55, and final euro-zone number at 9:00. Services sector numbers have generally been better than those in the manufacturing one. Spain had a score of 52.5 in January. Italy had 51.4. The initial read for France stood at 52.6, for Germany it was 53.3 and for the euro-zone 52.8. No changes are expected in the final versions. While British Final Services PMI is at the initial estimate for services PMI came in at 53.3, with the second estimate slightly revised lower to 53.2 points. US ISM Non-Manufacturing PMI, the services sector continues to outperform manufacturing, and services PMI climbed to 55.0 in January, its highest level in five months. The estimate for February stands at 55.1 points. Lastly BoC Rate Decision is that BoC has kept the benchmark rate pegged at 1.75% since October 2018 and no change is expected at the upcoming meeting. The tone of the rate statement could affect the movement of USD/CAD.Yesterday’s Market
Yesterday’s Focus
Today’s markets:
Today's Explained:
