Euro Extending Decline Ahead of Closely Watched German ZEW

Daily Update - 18th February 2020

Yesterday’s Market

• CNY China Foreign Direct Investments

Yesterday’s Explained

China Foreign Direct Investments shows sluggish trend after further affected people fall prey to Corona Virus and China’s affected number increases by day.

 

Today’s Market

• GBP Manufacturing Production, Industrial Production, Gross Domestic Product
• USD Fed’s Chair Powell Testifies

Today’s Focus

For the EUR, it’s a relatively busy day ahead on the economic calendar. ZEW economic sentiment figures out of the Eurozone and Germany for February.Forecasts are EUR negative, with the expected impact of COVID-19 likely to affect business sentiment. Hopes of fiscal support, however, should ease any material impact on the EUR, however. Through the early part of the day, risk aversion pinned the EUR pack as the markets responded to profit warnings hitting the news wires.

For the Pound, it’s a particularly busy day ahead on the economic calendar. Key stats include December wage growth and unemployment figures, together with January’s claimant count figures. Last month’s figures had given the Pound support, with better than expected numbers. More of the same is going to be needed to prevent a slide.

Across the Pond, it’s a relatively quiet day ahead on the economic calendar. Key stats are limited to NY Empire State Manufacturing Index numbers for February. Expect market sensitivity to the numbers, with any weaker than forecasted figures likely to test the Dollar.The talk has been of a resilient U.S economy. Weak numbers could question that outlook.