The euro sustained a steady depreciation vs. the US dollar Tuesday, extending Monday’s slide from just south of the 1.11 handle on the H4 timeframe. The US dollar index, or DXY, firmed, albeit off its intraday highs of 98.01.
Global Markets: Asian Stock Markets : Nikkei up 0.49%, Shanghai Composite up 1.34%, Hang Seng up 0.94%, ASX up 0.37% Commodities : Gold at $1577.05 (-0.34%), Silver at $17.73 (+0.32%), Brent Oil at $54.67 (+0.40%), WTI Oil at $50.47 (+0.72%) Rates : US 10-year yield at 1.560, UK 10-year yield at 0.517, Germany 10-year yield … Continue reading Tuesday 4th February: Chinese markets slightly recover after major Monday falls.
The broad dollar index (DXY) observed strong bidding Monday, largely on sterling’s demise, in which the index settled just south of 98.00. Also bolstering the USD was an overall solid ISM Manufacturing PMI reading.
Friday’s mixed Eurozone data, released in early European hours, was largely overlooked. EUR/USD bulls strengthened their grip on the back of a softer buck. The spread of the coronavirus continues to dominate market sentiment. Downgrades to the Fed’s assessment of private consumption and inflation target also contributed to the US dollar index (DXY) selling.
The Bank of England left UK interest rates on hold. The Bank also cut its growth forecasts and downgraded its expectations for productivity growth, in a sign that the UK economy has suffered from Brexit uncertainty.
