Market Analysis Before London and New York Session Open

2/27/2020 10:50:00 AM
DXY trades on either side of 99.000 after the index saw some weakness during US President Trump’s coronavirus presser, which highlighted that a usable vaccine would take 12-18 months to produce, while the President also noted that US GDP could be impacted – G10 pairs largely moved in tandem with the Greenback. EUR/USD briefly topped 1.0900 before stabilising around the figure, while GBP/USD just about reclaimed the 1.2900 handle, with traders on the lookout for PM Johnson unveiling his trade negotiating mandate with the EU, expected to set out a tough stance on fishing rights – one of the key sticking points.

Similarly, Antipodeans trade flat and in lockstep with the Dollar, with Kiwi largely side-lining a narrowing annual trade balance deficit as exports fell, whilst the Aussie ignored dismal Private Capex data.

AUD/USD fluctuates on either side of 0.6550 ahead of the most recent 11yr low of 0.6542, and NZD/USD found mild support at ~0.6280 which coincides with the Sep 27th and Oct 17th lows from last year.

Elsewhere, USD/JPY and JPY-crosses are uneventful, with the former largely dictated by its base currency. Finally, KRW garners attention after the BoK surprisingly left its Base Rate unchanged at 1.25%, against rising calls for a 25bps cut – initially instigating gains in the Won.

However, a surge in South Korean nCoV cases saw the currency pare back all its BoK-induced gains and reverse course. USD/KRW eclipsed 1216 to the upside vs. a BoK low of ~1209.25.
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