Probability of 3 Fed rate cuts in 2020 jumps to 80%

Omkar Godbole FXStreet Contributor

The probability that the US Federal Reserve (Fed) would cut rates three times this year has risen to 80%, according to Wall Street Journal's Daily Shot Newsletter.

The odds have risen sharply over the last two weeks, possibly in response to fears the coronavirus is spreading outside China and could cause a marked slowdown in the global economy.

The markets have turned risk averse this week with the Dow Jones Industrial Average losing more than 2,000 points in the last three days and gold, a classic haven asset, rising to seven-year highs near $1,690 on Monday.

While investors are eyeing rate cuts, the Fed minutes of the Jan. 28-29 meeting released earlier this month said the interest rates likely would remain unchanged for a while.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.