USD at 1.1085 against the EUR
The US dollar is currently trading at $1.1085 versus the euro, shedding another 0.3% during early Monday trading after losses of more than 1.8% over the course of last week. On Friday the Fed Chair indicated the central bank’s willingness to act as appropriate, which was interpreted by the markets as the sign of an imminent interest rate cut. Jerome Powell’s words came at the end of one of the worst weeks on record for stock markets across the globe, as investors started alienating positions, driven by fears that the coronavirus crisis will cause a global recession. The dollar losses reflect the pricing-in of an interest rate cut at the bank’s next meeting in mid-March, with some analysts even expecting it to be in the order of 50 basis points.
Ricardo Evangelista – Senior Analyst, ActivTrades
*The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication. All information has been prepared by ActivTrades PLC (“AT”). The information does not contain a record of AT’s prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of futures performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.