Forex Today: Biden boosts mood after Fed's coronavirus cut fails, critical US data eyed


Here is what you need to know on Wednesday, March 4:

US politics: Centrist Joe Biden is emerging as the new front-runner in the Democratic Party's "Super Tuesday" of primaries. Nevertheless, left-leaning Bernie Sanders has won California – the largest state – and the race continues. The market mood improved amid Biden's apparent lead, with commodity currencies on the rise and the safe-haven yen on the back foot. 

See Biden dominates Super Tuesday returns but nomination remains elusive

Earlier, the Federal Reserve's unscheduled double-dose cut of 50 basis-point failed to lift the market mood. The Fed's response to the coronavirus crisis is seen as falling short of shoring markets. Investors are looking for additional reductions to borrowing costs and perhaps more importantly – fiscal stimulus.

The surprise move sent bond yields plunging with the benchmark ten-year yields plunging below 1%. However, the dollar's reaction was mixed against the euro and the pound while it lost to the yen and commodity currencies. Gold surged back to around $1,650. Oil prices 

See Fed Coronavirus Cut Analysis: Sell opportunity on stocks? Sugar rush cannot solve the supply problem

Ahead of the Fed, finance ministers and central bankers of the Group of Seven (G7) pledged to support their economies in the wake of the crisis, but refrained from making specific commitments and disappointed markets. 

Coronavirus latest: The respiratory disease continues spreading around the world with Brazil joining the list of hot spots including Italy, Iran, South Korea, and China. The mortality rate of Covid-19 is estimated at 3.4% among those reaching out for treatment. 

China's Caixin Non-MAnufacturing Purchasing Managers' Index plummeted to 26.5 – a record low – and worse than the official Services PMI.

The Bank of Korea is set to follow the Fed with a rate cut and is the Bank of Canada. Expectations have risen from a 25bp cut to a 50bp one. The Canadian economy had been struggling with weak consumption before the current health crisis. 

See BOC Preview: Buy the coronavirus cut rumor, sell USD/CAD on the fact? Five scenarios

AUD/USD is bid after Australia's Gross Domestic Product for the fourth quarter beat expectations with 0.5%. 

Critical US figures are eyed. ADP's private-sector jobs report is set to show a sub-200K increase in positions in February after a leap of 291,000 in January. It serves as a clue toward Friday's official Non-Farm Payrolls.

See ADP Employment Change Preview: Fears but few facts

The ISM Non-Manufacturing PMI is forecast to show ongoing growth in America's largest sector. The employment component serves as another hint toward the NFP.

See ISM Non-Manufacturing PMI Preview: The Fed, US Treasuries, and the dollar

Cryptocurrencies have been bid, with Bitcoin edging closer to $9,000.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD falls below 1.0500 after US NFP data

EUR/USD falls below 1.0500 after US NFP data

EUR/USD dropped below 1.0450 but managed to stage a modest rebound. The US Dollar preserves its strength against its rivals and doesn't allow the pair to gain traction after the data from the US showed that Nonfarm Payrolls rose by 263,000 in November.

EUR/USD News

GBP/USD turns south on upbeat US jobs report, trades below 1.2200

GBP/USD turns south on upbeat US jobs report, trades below 1.2200

GBP/USD lost nearly 100 pips with the immediate reaction to the upbeat November jobs report from the US and broke below 1.2200. The US Dollar Index clings to strong daily gains above 105.00 after the data showed that Nonfarm Payrolls rose by 263,000.

GBPUSD News

Gold retreats below $1,790 as US yields surge on US NFP

Gold retreats below $1,790 as US yields surge on US NFP

Gold price turned south and dropped below $1,790 in the early American session. The benchmark 10-year US Treasury bond yield is up more than 2% on the day near 3.6% after the bigger-than-expected November job growth, weighing heavily on XAU/USD.

Gold News

FTX exchange collapse, loss of $3.1 billion could have been avoided on one condition

FTX exchange collapse, loss of $3.1 billion could have been avoided on one condition

FTX exchange, founded by Samuel Bankman-Fried (SBF), has consistently made headlines over the past month for its liquidity crisis and triggering a collapse in the crypto ecosystem.

Read more

AMC advances more than 3% in premarket day after being halted

AMC advances more than 3% in premarket day after being halted

AMC stock is up 3.4% in Friday's premarket just a day after authorities halted trading due to unusual volatility. Thursday saw options volume three times higher than the 20-day average.

Read more

Forex MAJORS

Cryptocurrencies

Signatures