(25 February 2020)DAILY MARKET BRIEF 2: WTI could fall further as big banks lower growth expectations.
The euro recovered past 1.0860 against the US dollar as German GDP is expected to confirm a 0.2% growth in the fourth quarter versus 0.0%
expected by analysts. An encouraging data could further fuel recovery in single currency against a softening US dollar. But any
disappointment should limit the upside potential.
Cable remains offered near 1.2940. Recovery in oil and commodity prices and a
cheaper Sterling may help the FTSE 100 gaining some field above the 7200p level on Tuesday, following a 3.34% drop in the energy-heavy index
on Monday.
In the US, the Richmond Fed manufacturing index could hint at a slowdown in February activity. Any positive surprise, as we have
seen in other states last month, could put a floor under the US dollar’s downside correction and give a positive spin to the greenback, while a
soft read should send the US dollar index below the 99 level and encourage a further recovery in euro and pound.
By Ipek Ozkardeskaya
