Still no bounce in the Kiwi Dollar as market sentiment remains cautious as coronavirus dominates market focus. Cases of the virus in China have now surpassed the country’s total from the 2003 SARS epidemic, leading to further action by the Chinese government to contain the outbreak.
Fed Leaves Rates Unchanged
The other big news this morning is the US Fed interest rate decision which has just been announced as no change, as widely expected. There has been no immediate impact on currencies with officials pointing to the usual moderate U.S economic growth and “strong” job market. There has been no specific reference to the coronavirus outbreak, however this will likely be discussed at Chairman Powell’s press conference shortly.
AUD Lower Despite Surprise CPI
The Australian Dollar trades lower this morning after making gains yesterday on a higher than expected inflation number.
Euro Continues Fall
The Euro remained under pressure, sitting at a 2 month low vs the US Dollar, as risk-off sentiment dominates global markets. Even with euro-zone GDP and CPI coming up on Friday, it appears the short-term path for the euro is likely to be weighed by overall market sentiment.
Pound Awaits Rate Decision
The GBP was trading at near one week lows ahead of tonight’s Bank of England decision on interest rates. Expectations are pretty much split between no change or a 0.25% cut.
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