Here is what you need to know on Tuesday, February 11:
The coronavirus' death toll has topped 1,000 as the disease continues spreading, but the infection rate seems to have stabilized. Stock markets around the world have turned up and the safe-haven US dollar, Japanese yen, and Gold are all on the back foot. Investors are encouraged by the relatively low mortality rate and the return of Chineses factories to business. However, conferences are coming under cancelation pressures.
Jerome Powell, Chairman of the Federal Reserve, goes to Capitol Hill for his bi-annual testimony. While the Fed intends to leave rates unchanged, bond markets are pricing a rate cut in September. Powell may open the door to slashing borrowing costs later down the line, especially if the virus causes significant economic damage.
See Powell Preview: Pleased but wary
Christine Lagarde, President of the European Central Bank, will also meet lawmakers and may shed more light on current conditions and on the bank's intentions. The ECB is conducting its strategic review, with Lagarde reported aiming to conclude it in July. EUR/USD is trading close to the 2019 lows.
Mark Carney, Governor of the Bank of England, completes the trio of central bankers as he testifies before a committee in the House of Lords. The outgoing governor may comment on GDP figures.
The UK is expected to report zero Gross Domestic Product growth in the fourth quarter, after expanding by 0.4%. The government plans to announce massive infrastructure spending to boost the economy, including the controversial HS2 plan.
Brexit: Ahead of talks about future relations, UK Chancellor of the Exchequer Sajid Javid wants the UK to set its own rules but retain some level of equivalence with the EU. Brussels has also presented more details about its aims, and both sides are placing themselves far apart, risking a no-trade-deal Brexit. Sterling is shrugging this off.
German Chancellor Angela Merkel will take an active role in choosing a new successor after her CDU's party leader Annegret Kramp Karrenbauer stepped down following political missteps. The ruling grand coalition in Europe's largest economy remains vulnerable.
Oil prices have stabilized with WTI hovering around $50 as markets assess the potential drop in demand and Russia's reluctance to cut production.
Cryptocurrencies are on the back foot, correcting some of their recent gains, with Bitcoin trading below $9,800.
More: Trump's approval rating hits multi-year highs: Three reasons and dollar implications
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.
Recommended content
Editors’ Picks
EUR/USD regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold climbs above $2,340 following earlier drop
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.