Daily Update - 27th February 2020
EUR – ECB President’s Speech The euro was back in negative territory against dollar on Wednesday after the China coronavirus outbreak spread to Italy, increasing concern over the outlook for the euro zone economy. In the worst flare-up of the virus in Europe, Italy reported a sixth death and more than 220 infections, raising fears that Italy’s contracting economy could soon be thrown into another recession. A sharp rise in infections in South Korea and Iran has also helped to fuel fears that the coronavirus outbreak will become a pandemic. Sterling declined against dollar on Wednesday as investors cut positions on concerns that Britain’s new finance minister Rishi Sunak’s budget announcement in March may disappoint those waiting for a pick-up in fiscal spending. Traders sold the pound around the $1.30 level after Tuesday’s gains as risky assets broadly came under pressure in response to a deadly virus spreading outside China, with the British currency leading losers. The British currency fell as much as 0.7% to $1.2913 and held close to those levels in late trade. It’s a relatively busy day ahead on the Eurozone economic calendar today. Economic data includes prelim February inflation figures out of Spain and finalized Eurozone consumer confidence numbers. From the U.S, durable goods orders and 2nd estimate GDP numbers for the 4th quarter also provided direction. Expect the Eurozone consumer confidence and numbers from the U.S to have the greatest influence from the calendar. It will ultimately boil down to news updates and the later coronavirus numbers.Yesterday’s Market
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