Capital markets are still processing the potential impacts that Coronavirus could have across different geographic regions and the economies that are located there. Risk trades will naturally see USDJPY trade lower, and this is no exception, with price losing 1.5% since 13th January. AUDUSD is down 4.2% month to date, and NZDUSD is down 3.5% in the same trading period.
Significant economic data focuses solely on the United States today, with Durable Goods, Non-Defence Capital Goods Orders and Consumer Confidence all due this afternoon. The Bureau of Economic Analysis records a 12 month increase in retail consumption of 0.52%, revealing the strongest year for consumption since March 2006. Bear in mind that the US interest rate update is due out tomorrow evening, so data today is unlikely to impact the rhetoric.
GBPUSD has once again found itself fighting with the 1.30 level as the BoE “Super Thursday” looms closer and nerves get the better of the Pound. EURUSD is continuing to make its way to the high 1.09s – strong economic data today will continue this Dollar rally into the later part of the week.
Having two major Central Banks update their interest rate plans back-to-back will most certainly drive more volume and volatility. Your account manager is on hand to help create a tailored currency strategy, just give them a call today.
Have a great day.
Author: Alistair Hutson, Private Dealing Manager
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