Here is what you need to know on Wednesday, February 26th:
- The coronavirus extended its claws through Europe, with more cases reported in France, mainland Spain and Germany. The American dollar seesawed between gains and losses, but edged lower during US trading hours, as government bond yields collapsed. The yield on the 10-year Treasury note traded at a record low of 1.32%.
- The EUR/USD pair settled near 1.0900 amid the dollar’s weakness, and despite German Q4 GDP was confirmed at 0%.
- GBP/USD recovered 1.3000 despite mounting tensions between the UK and the EU over the future trade relationship. The EU released the Political Declaration, a document set to be the base of the upcoming trade relationship with the UK. The kingdom will release its declaration next Thursday, although Downing Street responded to the EU, claiming that the UK deserves the same respect to autonomy as other major economies such as Canada and Japan, and mentioned that the EU doesn’t demand a level playing field when dealing with the US.
- Gold prices consolidated, with spot hovering around $1,650 a troy ounce, although crude oil prices were down, weighed by plummeting equities and fears the coronavirus will affect demand.
- Wall Street closed with substantial losses for a second consecutive day. The DJIA lost roughly 800 points.
- Cryptocurrencies came under selling pressure, reaching fresh lows. BTC/USD approaching $9,000.00.
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