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Forex Today: EUR/USD falls toward Macron gap, Pound enjoys Javid jump, US consumer, coronavirus eyed

Yohay Elam FXStreet

Here is what you need to know on Friday, February 14:

EUR/USD is extending its slide, trading closer to the "Macron Gap" from April 2017. Investors see the glass half empty as recent data have been disappointing. Moreover and contrary to the US and the UK, Germany and other countries are holding back on spending. The largest economy in the eurozone is around stall-speed.

GBP/USD remains on high ground after Prime Minister Boris Johnson forced the now-former Chancellor of the Exchequer Sajid Javid out. Rishi Sunak, the new treasurer, is set to work more closely with No. 10 and open the door fiscal spending, especially on infrastructure. Government stimulus relieves the Bank of England from the pressure to cut rates, thus pushing the pound higher. The budget planned for March 11 may be delayed.

See GBP/USD has more room to run after the reshuffle rally

Coronavirus: The number of cases nears 63,000 on the second day after authorities in China changed its counting methodology, adding CT scans in addition to lab tests. Larry Kudlow, a senior adviser at the White House, has expressed disappointment from Beijing's level of transparency on the respiratory disease.

Markets temporarily dipped on Thursday amid a leap in cases but recovered swiftly. Nevertheless, the safe-haven yen and gold have retained some of their safe-haven gains.

The US consumer is in focus later today. Retail Sales figures for January are set to show another month of growth in sales. Later, the University of Michigan's Consumer Sentiment Index for February is also forecast to point to high confidence. On Thursday, inflation surprised with the Core Consumer Price Index holding at 2.3% yearly.

Retail Sales Preview: Jobs and consumption are the core of the US economy
Consumer Sentiment Preview: Looking in the labor market mirror

Oil prices have stabilized with WTI topping $51 despite ongoing tensions within the OPEC+ group.

Cryptocurrencies are on the back foot after challenging new highs. Bitcoin is trading closer to $10,000.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

GBP/USD bounces off lows, back above 1.3200

After bottoming out near 1.3160, GBP/USD manages to regain a bit of shine and reclaim the 1.3200 mark and beyond at the end of the week. Stronger-than-expected UK Retail Sales data seem to be helping the British Pound limit its losses, while the chaotic UK political environment keeps the bulls at bay for now.

EUR/USD looks consolidative around 1.1460

EUR/USD stages a modest rebound after slipping to a three-month low below 1.1420 at the end of the week. That said, the pair now looks to consolidate humble gains just above 1.1460 despite growing uncertainty surrounding the next round of US-Iran negotiations, which keeps the US Dollar’s downside contained.

Gold slips back to six-day lows, targets $4,100

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Breaking: Iran closes the Strait of Hormuz amid ceasefire deal violation

Iran says it is closing the Strait of Hormuz after accusing the United States (US) and Israel of violating the ceasefire. According to Iran, the decision came over the continued Israeli strikes in Lebanon. The Iranian Revolutionary Guard Corps Navy issued a warning to all vessels: "Do not approach the Strait of Hormuz; otherwise, your security will be jeopardized."

The Iran war didn't break the US economy, but what happens next?

Nearly four months after the start of the Iran war, the US economy remains remarkably resilient. While the conflict initially triggered a severe disruption to global energy markets and a sharp rise in Oil prices, recent diplomatic progress between Washington and Tehran has eased concerns about a prolonged supply shock.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.

Forex Today: EUR/USD falls toward Macron gap, Pound enjoys Javid jump, US consumer, coronavirus eyed

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