Focus turns to the UK as markets tumble
A horror night for markets as indices were belted over concerns of further major coronavirus outbreaks in the US.
The USD rallied overnight, sending major currency pairs down. The EURUSD opened at $1.13684 and ebbed and flowed throughout the first half of the day before edging up to a high of $1.14033 late in the day. The final hours of the session saw the euro tumble to lows of $1.12877. That slide has continued and is now trading at $1.12814. The GBPUSD began the day at $1.27458 and ticked up to a high of $1.27540 shortly afterwards. It was basically all downhill from there as the pound crashed to a low of $1.25869. It is currently trading at $1.25477.
The threat of another large coronavirus outbreak in the US sent stocks packing overnight. The Dow once again bore the brunt, stripping almost 2000 points from its high. The index opened at 26,950.08 and nudged up to an opening-hour high of 27,005.52. The losses started early and accelerated late in the day with the Dow plummeting to a low of 25,074.53. It has come off those lows slightly and is now trading at 25,394.00. The Dax was dragged down under the weight of the falling Dow overnight. The German index began the day at 12,428.14 and lifted to a high of 12,494.84 early in the day. Those highs were not held for long as the Dax fell away for most of the day, dropping to lows of 11,754.48. It has come off those lows and is now trading at 11,884.21.
The day ahead shapes up to be a really interesting one for markets as the fallout continues from the horror show overnight. Attention turns to the UK where they will be publishing monthly GDP data. The UK economy is tipped to contract by a whopping 18.6%, a further deterioration after the economy posted a contraction of 5.8% in the previous month.
Other data published today includes:
Japan – Revised Industrial Production
Canada – Capacity Utilisation Rate
US – Prelim UoM Consumer Sentiment & Inflation Expectations, Import Prices
Europe – French Final CPI, Italian Quarterly Unemployment Rate, European Industrial Production
UK – Manufacturing Production, Construction Output, Goods Trade Balance, Index of Services, Consumer Inflation Expectations, Industrial Production, CB Leading Index, NIESR GDP Estimate
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