US data eyed as carnage continues

February 27, 2020

In amongst all the talk surrounding the coronavirus, there is actually some important data slated for release.

The EURUSD traded in a tight range overnight, edging up slightly. The pair began the day at $1.08803 slid early before climbing to highs of $1.09084 mid-session. It fell away from those highs, hitting lows of $1.08541 a couple of hours later. The euro bounced off those lows and regained most of those earlier losses in late trading. It is now trading at $1.09006. The GBPUSD headed south overnight, giving up the gains it made during the previous session. The pair started the session at $1.30042 and nudged up to a high of $1.30078 early in the day. It was downhill from there as the pound retreated for most of the day, hitting lows of $1.28956 late. It has come off those lows slightly and is now trading at 1.29112.

Indices continue to take a battering, with the Dow copping the brunt of the coronavirus-fuelled sell-off. The index opened at 27,198.84 and was steady early before dropping to lows of 26,707.66 mid-session. It recovered from those lows, rallying to highs of 27,534.29 late in the day. However, that wasn’t the end of the twists and turns as the Dow fell again, closing at 26,926.29. It has opened lower and is now trading at 26,789.50. The Dax was more resilient overnight, opening and closing rather flat. The German index began the day at 12,695.86 and was flat early before sharp sell-off mid-session saw it hit a low of 12,365.66. Those levels were not held for long as the Dax rebounded, rallying to a high of 12,849.60 and then closing at 12,596.27. It has opened lower in Thursday trading and is now at 12,502.85.

Most of the market talk today centres around the latest coronavirus news and what economic impact it is likely to have globally. However, there is some crucial economic data emanating from the US. The US will be publishing Prelim GDP data in the early hours of tomorrow morning. This quarterly annualised figure covers the December quarter, so the impacts of the coronavirus have not been completely captured. The US economy is expected to have grown by 2.1%, in line with the previous quarter.

Other data published today includes:

Canada – Current Account

UK – MPC Member Jon Cunliffe speaks

Europe – Spanish Flash CPI, M3 Money Supply, Private Loans

US – Durable & Core Durable Goods Orders, Prelim GDP Price Index, Pending Home Sales, Unemployment Claims, Natural Gas Storage, FOMC Member Loretta Metser speaks


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