On the back of the shock interest rate cuts, markets seem to be enjoying cheaper money.

The EURUSD has backed away from the rally of the previous session that saw it peak above $1.12. The pair opened at $1.11714 and weakened slightly early, before picking up and hitting a high of $1.11872 mid-session. The euro fell away from those highs, dropping to lows of $1.10945 a few hours later. Late-session trading saw the euro bounce back and it is now trading at $1.11408. The GBPUSD rallied overnight, climbing over a cent off its lows. The pair began the day at $1.28106 and remained steady early before falling to lows of $1.27686 mid-session. The pound bounced off those lows as it powered its way to a late high of $1.28723. It is basically still at those highs, currently trading at $1.28712.

The Fed’s decision to cut rates has buoyed stocks, sending them on a tear overnight. The Dow opened at 25,840.27 and dipped to a low of 25,723.77 in the opening hour. The Dow surged off those lows, piling on almost 1,400 points as it peaked at 27,090.24 late in the day. It has come off those highs and is now trading at 26,892.50. The Dax followed the Dow’s lead after starting the day at a low of 11,849.77. It was basically all up from there as the Dax rallied to a high of 12,276.10. It has opened slightly lower on Thursday and is now trading at 12,193.93.

Market focus continues to be centred around news on the coronavirus. As the spread continues and further restrictive measures are taken, markets will look to see what the longer lasting impacts on businesses these new measures will have. A downturn in business could mean trouble for some companies, particularly in the aviation and tourism industries.

Data published today includes:

Australia – AIG Services Index

Canada – BoC Governor Stephen Poloz speaks

UK – BoE Governor Mark Carney and MPC Member Andy Haldane speak

US – Challenger Job Cuts, Revised Non -Farm Productivity, Revised Unit Labour Costs, Unemployment Claims, Factory Orders, Natural Gas Storage

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