03 Feb 2020
The U.S. dollar is looking to recover as it consolidates Friday’s gains, holding its trade value at 1.11.
The shared currency helped the EUR/USD pair to go into the 1.1100 region after adding modest gains to hold its attempt to keep its value for the second consecutive session. Eurozone macro releases, which turned out to be weaker, were thought to hinder the pair’s advancement.
Eurozone core CPI dropped by 0.2% to 1.1% whereas there was a 0.1% rise in the fourth quarter GDP. However, both failed to exceed expectations.
Core PCE inflation data failed to meet Fed's target despite reaching market expectations in December. The USD continued to be pressured by the publication of the Chicago PMI, which showed a decline in January MoM. Last month, PMI came out at 48.9 and the latest result showed 42.9.
Concerns about the coronavirus continued to affect currencies, as the virus has now reached around 23 countries. This led global equities to sell-off, forcing a decline on the U.S. Treasury bond yields.
The GBP/USD trades in the 1.31 region as the British Prime Minister is expected to be strict when in discussions with the EU over a trade deal, now that the UK is formally out of the bloc.
The Bank of England’s 7-2 vote split to leave rates unchanged at 0.75% helped the British Pound’s gains, adding on to Friday’s intraday rally of over 120 pips.