Equity indices turned south again during the Asian session today, after China’s National Health Committee announced that the number of deaths due to the coronavirus has increased to 170, while the cases of infected people surged to 7711. Yesterday, we also had an FOMC decision, with officials standing pat and Powell noting that they will not tolerate low inflation. As for today, the central bank torch will be passed to the BoE, with the big question being whether to cut or not.
Equities Turn South Again, Fed Will Not Tolerate Low Inflation
The dollar traded higher against most of the other G10 currencies on Wednesday and during the Asian morning Thursday. It gained versus NOK, AUD, NZD, CAD and SEK in that order while it underperformed only against CHF and JPY. The greenback was found virtually unchanged against EUR and GBP.
Following the calmer risk environment on Tuesday and during the Asian morning yesterday, it seems that at some point things took a 180-degree spin again, something suggested by the...
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