Return to daily updates Thursday February 27th 2020

USD falls as first case of coronavirus reported in US

Headlines

  • The pound under pressure on risk appetite
  • USD falls as first case of coronavirus reported in US

GBP

  • The pound fell on Wednesday as the markets took the position that the new finance minister Rishi Sunak budget may not include in increase in fiscal spending. GBPUSD moved from 1.30 to 1.29 as riskier assets and currencies also came under pressure in response to increasing fears on coronavirus. Against the euro, sterling was down 0.6% at 84.17 pence per euro, having weakened to 84.33 pence – its lowest level in just over two weeks.

EUR

  • The euro moved away from the three year lows against the dollar, currently sitting at 1.0943. This said, coronavirus has now reached Germany and Austria and further spreading of the deadly virus may overshadow economic data at this time.

USD

  • The dollar fell across the board on Thursday after the first coronavirus infection of unknown origin was confirmed in the United States, adding to fears of a pandemic. The dollar also fell from a three-month high versus the pound and declined versus the euro currently sitting at 1.2930 and 1.1818 respectively. 
  • Investors in the dollar are also focused on the release of U.S. durable goods orders and gross domestic product data later on Thursday, which could test the greenback if the numbers disappoint expectations.
Amir Mehrad
Market update by Amir Mehrad
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