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Forex Today: Fears to keep leading the way

Here is what you need to know on Monday, February 24th:

  • The American dollar edged lower at the end of the week, amid dismal US data triggering profit-taking. Business output contracted in the country for the first time since 2013. The greenback’s bullish trend remains in place, as the movements seem corrective.
  • Coronavirus possible effects on global economic growth kept the mood depressed. Global equities closed in the red, while the yield on the benchmark US 30-year Treasury note fell to a record low of 1.89%. Fears of a recession hit Japan and the US.
  • The EUR/USD pair has finished the week around 1.0850, the 23.6% retracement of its latest daily slump. The advance seems corrective, and chances of additional gains are limited.
  • The GBP/USD pair bounced from a fresh yearly low, remains sub-1.30. UK manufacturing output unexpectedly soared. The EU and the UK set to start trade talks in March, Brexit to return to the spotlight.
  • The Aussie remains among the weakest, as the Australian economy is being hit by Chinese jitters.
  • The Japanese yen recovered just modestly after collapsing in the previous days, amid fears of a technical recession in Japan.
  • Gold prices soared, with spot reaching a fresh multi-year high of $1,649,21 a troy ounce.
  • Crude oil prices edged higher for a second consecutive week but closed Friday in the red. Saudi Arabia is weighing a break-up of the oil production alliance with Russia amid disagreements over the coronavirus outbreak's potential impact on the global oil demand.
  • Cryptocurrencies advanced on Sunday, poised to extend gains this week. 

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FXStreet Team

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

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