Forex Today: Soaring Fed's rate cut odds hit the greenback
|Here is what you need to know on Friday, February 28th:
- The greenback plummeted as record lows in Treasury yields and collapsing Wall Street fueled speculation of an upcoming rate cut in the US. Odds for a rate cut as soon as next March have increased to 72% from 33% two days ago, according to the CME Group FedWatch tool.
- The EUR/USD pair peaked at 1.1006, settling just below 1.1000. The common currency got additional support from headlines suggesting that Germany would act through a fiscal stimulus program if the coronavirus hits the local economy.
- The Pound was the weakest, undermined by Brexit-related headlines. The UK government published a document outlining its priorities for trade talks. Among other things, the document showed that the kingdom is ready to walk away from the negotiation table in June if there’s no progress on talks by that point. Also, the agreement should not require the UK to follow EU standards.
- The USD/JPY pair settled below 110.00, bouncing from the critical 109.65 support. Chances are of a break lower.
- The Aussie recovered just modestly amid dollar’s weakness, while the Canadian dollar plummeted alongside crude oil prices, these last, affected by market’s fears.
- Gold eased just modestly at the end of the day, settling at around $1,640.00 a troy ounce.
- Crypto Today: Bitcoin troubles still linger underneath $9000
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