Coronavirus continues to be the main factor driving markets with more risk-off trading overnight which has seen equity prices continue to fall, and safe have currencies make ground. The Kiwi Dollar has held up reasonably well, finding support on growing expectations that the US may look to ease monetary policy to reduce financial pain from the coronavirus impact.
US Dollar Mixed
The US dollar is slightly lower today as the market weighs the likelihood of the Federal Reserve rate cuts down the road. However, the coronavirus fears are also boosting demand for US assets in the flight-to-safety rush. With the dollar stuck between these two competing forces, range-bound trading is a reasonable expectation until one of these factors tip the scales. On the data front, US consumer confidence rose to a 6 months high, although was slightly under market expectations.
Pound Performs Well
The British pound is one of the best performing majors today after a monthly retail sales gauge came in at 10-month highs and news that EU members are preparing to sign their mandate for trade talks with the UK. The UK is set to publish its mandate on Thursday, which should give some insight into how far apart the two sides may be.
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