ActivTrades’ Market Analysts prepared their daily commentary on traditional markets for March 2, 2020. This is not a trading advice. See details below:
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