Return to Currency News Thursday February 13th 2020

EURUSD at 2 1/2 year lows

Headlines

  • USD gains again as coronavirus numbers increase, lowest levels in EURUSD for 2 1/2 years
  • Pound trading ranges

GBP

  • (Reuters) – Sterling recovered on Monday from 2-1/2 month lows, holding its own against the broadly stronger dollar following last week’s sell-off that was driven by concerns over Britain’s trade talks with the European Union.The pound tumbled 2.4% last week against the dollar, its biggest weekly fall in seven weeks as investors priced in the risk of Britain failing to agree a trade deal with the European Union in the 11 months left of the Brexit transition period.

  • UK house prices rose at the fastest pace in three years today showing possible signs of consumer sentiment improving especially after the December election. The Royal Institution of Chartered Surveyors’ (RICS) monthly house price index surged to +17 in January from -2 in December, its highest reading since May 2017 and above all forecasts from economists in a Reuters poll.

EUR

  • The EURUSD rate has moved to a 2 1/2 year low over fears on coronavirus, as well as general risk sentiment for the single currency. Earlier on Wednesday, the market saw the Eurozone industrial sector contract by 4.1% compared to the 2.3% expected, which helped push the pair lower.
  • GBPEUR currently trades around 1.1930, with EURUSD sub 1.09 at 1.0885.

USD

  • (Reuters) On Tuesday, Federal Reserve Chair Jerome Powell told Congress the U.S. economy was in a good place, even as he cited the coronavirus threat and some long-term concerns. The dollar gained 0.26% against the Japanese yen JPY= to 110.06 yen. The euro EUR= dropped 0.41% against the greenback to bottom at $1.0863, the lowest level since May 2017. It last stood at $1.0873.
  • The greenback has strengthened against the euro as economic data shows a brighter economic outlook for the United States than the euro zone.
Amir Mehrad
Market update by Amir Mehrad

14 years experience in deliverable foreign exchange, over 7 as CEO of Effective FX

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