The Epidemic in China Remains in the Spotlight

In the course of yesterday's trading, the U.S. dollar practically did not change the basket of major currencies. The US and Canadian financial markets were closed due to the holidays. The attention of investors was focused on the EUR, which continued to decline. Investors expect reports from Germany, which are expected to indicate a sharp deterioration in sentiment and increase pessimism about the prospects of the European economy.

The Australian dollar depreciated against the US dollar after the Reserve Bank of Australia (RBA) expressed its concerns about the coronavirus. In the minutes of the last RBA meeting on monetary policy, the bank confirmed that low interest rates are likely to continue for a long time and added that it will weaken the monetary policy even more if necessary. Meanwhile, the People's Bank of China added to the stimulating measures the reduction of the medium-term lending rate to a new record low level.

Oil went down again. Futures on WTI oil are currently testing $51.50 per barrel.

Market Indicators

Yesterday, the U.S. stock market did not operate due to Washington Day.

The yields on 10-year U.S. government bonds have fallen again. The are currently at 1.54-1.55%.

The Economic News Feed for 18.02.2020:
  • - UK labor market data - 11:30 (GMT+2:00);
  • - ZEW economic sentiment index in Germany - 12:00 (GMT+2:00).

by JustForex, 2020.02.18

We advise you to get acquainted with the daily forecasts for the major currency pairs.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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