What you need to know on Friday, February 19:
The dollar lost momentum as demand receded. European currencies benefited the most with EUR / USD peaking around 1.2090 and GBP / USD rising to a new multi-month high of 1.3985. Commodity-linked currencies made modest gains against their US rival.
Yields on US Treasuries fell. Worse-than-expected US employment data provided short-lived support, but yields ended the day in the red. Global indices also fell, but Wall Street managed to rebound from pre-close lows.
The European Central Bank released the Accounts of its last meeting and, as the US Federal Reserve did a day earlier, policy makers noted that extensive monetary stimulus remains essential in the context of the current pandemic. The tepid employment-related data in the US somewhat confirmed the slowdown in progress in the sector and justified the Fed’s concerns.
Gold remained under selling pressure, but intraday losses were modest. Crude oil prices, on the other hand, fell sharply and the WTI was just above $ 60.00 a barrel. The raw material fell despite shortage fears due to weather conditions in Texas.
Market players await news about the US stimulus and the easing of restrictive measures in Europe. Immunization against the coronavirus through vaccines continues with encouraging news from those countries where the campaigns are more advanced. Still, Pfizer and Moderna noted that their shots are less effective against the South African strain.
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