Forex Today: Markets, dollar slump after Trump's coronavirus response, crypto retreat, US data eyed


Here is what you need to know on Thursday, February 27:

President Donald Trump has addressed the nation on the coronavirus outbreak, saying the US is prepared, that is just the flu, and tapping Vice President Mike Pence to coordinate the response. He also criticized the Federal Reserve's policy. 

Stocks and majors: Trump added that stocks should recover, yet S&P futures are pointing to falls on Thursday and Asian markets are down. The benchmark ten-year Treasury yields hit a new record low at 1.287%, weighing on the dollar against majors and implying an imminent rate cut. EUR/USD trading above 1.09, USD/JPY is battling 110, and GBP/USD is holding above 1.29.

Commodity currencies are extending their slide, with AUD/USD trading around 0.6500 – a new decade low – also pressured by a fall of 2.8% in Australian Private Capital Expenditure. USD/CAD topped 1.33 as oil prices continue tumbling amid fear of weaker global demand. Gold prices are stable at around $1,650.

Disease updates: The first person-to-person case was reported in the US while Wednesday's count of new cases consisted of more infections outside China than inside, for the first time. On Thursday, China reported 433 new cases and South Korea 334 ones. The continued spread in Europe is also worrying investors. A report from Japan about a potential quick method to test for the virus has provided some encouragement.

US data is on the docket today, with the second read of Gross Domestic Product set to confirm the annualized growth rate of 2.1% in the fourth quarter.

See US Fourth Quarter GDP Preview: Old news

Durable Goods Orders for January projected to rise on the headline but drop on core figures. New Home Sales surprised by jumping to 764K annualized in January. 

See US Durables Preview: As China turns

Brexit: Chief EU Negotiator Michel Barnier softened his tone and said Brussels will offer London a "super preferential" deal. Official talks kick off on Monday. 

Cryptocurrencies have been extending their losses after a sell-off on Wednesday when Bitcoin dropped below $8,700. 

More Gold may top $1,800 as coronavirus in Italy propels market panic – Interview with Kathleen Brooks

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD hits fresh one-month low amid souring market mood

EUR/USD has been extending its falls and dips below 1.21 as US retail sales badly disappointed and the worsening mood is supporting the safe-haven dollar. Markets digest Biden's stimulus plan. US Consumer Sentiment declined to 59.2 points. 

EUR/USD News

GBP/USD retreats toward 1.36 amid fresh dollar strength

GBP/US has pared its gains and falls toward 1.36 as the dollar gains ground. The UK economy shrank by 2.6% in November, better than estimated. The UK is ramping up its vaccination campaign and PM Johnson is pressured to ease the lockdown. 

GBP/USD News

Gold extends sideways grind near $1,850

The XAU/USD pair registered small daily gains on Thursday but struggled to extend its recovery amid a lack of significant fundamental drivers on Friday. As of writing, the pair was up 0.15% on a daily basis at $1,849.

Gold news

Forex Today: Markets “sell the fact” on Biden's stimulus, dollar rises, retail sales eyed

Markets are on the back foot after Biden hinted about tax hikes while introducing stimulus. The safe-haven dollar is edging higher despite Powell's pledge to keep monetary policy accommodative. 

Read more

DXY breaks above key downtrend, eyes move above 91.00

USD has been strongly supported on what has shaped up to be a very much risk off final trading day of the week. Most G10/USD pairs have seen significant weakness, aside from CHF/USD and JPY/USD, given that the two currencies are also considered “safe havens”.

US Dollar Index News

Forex MAJORS

Cryptocurrencies

Signatures