- GBP remains steady, eyeing Brexit talks
- USD pushing higher as investors buy safety
GBP is holding steady depsite the “risk off” nature of the markets currently. As such, with the EU looking to sign off its negotiating mandate for trade talks to begin from March 2nd, the focus is back onto Brexit. Any signs of tensions rising between the EU and UK will drive the movement of the pound over the coming months.
Euro weakness continues in the market on coronavirus fears as well as investors fears on the EU economy. Weaker data and global news has recently caused the Euro to trade around a three year low against the dollar. Markets will now eye EU data this week, in particular any German data showing signs of slowdown.
- New fears on the rapid spread of coronavirus outside of China caused investors to seek safe heaven status in the US Dollar. Investors deem the US economy to be the most sheltered should the virus continue to hurt the global economy. Italy, South Korea and Iran posted sharp rises in infections over the weekend. South Korea now has more than 760 cases, Italy more than 150 and Iran 43 cases.