Currency Majors Show a Variety of Trends. Investors Expect Negotiations Between the EU and the UK

The US dollar shows mixed results against a basket of major currencies. The dollar index (#DX) closed with a slight increase (+0.04%). Traders are closely monitoring the spread of COVID-19. WHO said yesterday that coronavirus spread outside of China much faster than in the country itself. On Thursday, the authorities of the world expanded measures to combat the potential pandemic of the coronavirus. The United States and South Korea have postponed joint military exercises to limit the spread of the virus that appeared late last year in China.

Trading activity and volatility on currency pairs with the Euro and the British pound increased significantly before trade negotiations between the UK and the EU, which are scheduled for March 2. However, traders are still worried that the recent harsh rhetoric on both sides could make negotiations unlikely to go smoothly. Michel Barnier, the EU's Chief Negotiator, said the bloc would not agree to the deal "at any price."

The "black gold" prices have continued to decline. At the moment, futures for the WTI crude oil are testing the $47.80 mark per barrel.

Market indicators

Yesterday, there was a variety of trends in the US stock market: #SPY (-0.37%), #DIA (-0.35%), #QQQ (+0.52%).

The 10-year US government bonds yield fell sharply again. At the moment, the indicator is at the level of 1.29-1.30%.

The Economic News Feed for 27.02.2020:
  • - Statistics on durable goods orders in the US at 15:30 (GMT+2:00);
  • - US GDP data at 15:30 (GMT+2:00);
  • - Pending home sales in the US at 17:00 (GMT+2:00).

by JustForex, 2020.02.27

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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