British Pound, Euro, Yen Gain as US Dollar Weakens in Tense Session

BRITISH POUND, EURO, JAPANESE YEN, US DOLLAR, CORONAVIRUS, S&P 500 – ASIA PACIFIC MARKET OPEN
British Pound, Euro gain as the US Dollar’s relatively-high yield is at risk
CDC warns of coronavirus pandemic, U.S. consumer confidence falls short
GBP/USD still maintaining bearish technical bias as the Japanese Yen rose
BRITISH POUND, EURO AND JAPANESE YEN OUTPERFORM THE US DOLLAR AS STOCKS TUMBLE
The British Pound, Euro and anti-risk Japanese Yen were some of the best-performing major currencies on Tuesday. Market mood continued to aggressively deteriorate in the wake of the coronavirus outbreak. The S&P 500 dropped 3.03 percent over the past 24 hours, bringing its total decline from last week’s peak to over 7.6%. The Dow Jones fell 3.15% as Wall Street extended the slump.

As Wuhan virus cases increased in countries such as Japan, Italy and Iran, the U.S. Centers for Disease Control and Prevention (CDC) announced that a pandemic is now likely. Meanwhile local consumer confidence data missed expectations, rising much less than expected to 130.7 in February from 130.4 prior. As a result, the markets are increasingly pricing in a more-dovish Federal Reserve.

Fed funds futures now indicate that a third rate cut by the end of this year is hovering around a 40% probability. Expectations that the US Dollar may greatly see its yield advantage against the British Pound and Euro erode likely paused some of the aggressive gains it has experienced as of late. However, do not underestimate its status as the world’s reserve currency which may come back to offset near-term declines.

Komen anda

Scroll to Top
Ada pertanyaan mengenai Weltrade? Hubungi team kami melalui WhatsApp di bawah atau melalui email kami [email protected].