Daily Market Analysis from ForexMart

07.02. Euro updated its minimum at 1.0950

The euro continues to update lows in the 1.0950 area. Moods at global sites remain negative amid continued growth in infections and deaths from the Wuhan coronavirus. High infection rates limit risk appetite.

The dollar continues to receive support from the publication of macroeconomic reports from the United States. ISM indices and ADP data released this week turned out to be significantly better than analysts' forecasts, which provided significant support to the American currency.

Today, you should pay attention to official statistics on the US labor market. If the data reflect the increase in the number of new jobs in the US economy in January, the dollar will be able to finish the week at very favorable levels.

EUR/USD. February 10, 2020 – Euro continues to drift in the area of ​​lows

The pair EUR/USD starts the week at the low of 1.0945. The US dollar remains strong after the release of statistics on the labor market. The number of newly created jobs in the United States increased by 225 thousand, which significantly exceeded the consensus forecast of analysts, suggesting an increase of only 165 thousand.

Today the news background is calm. The dynamics of the pair will be determined mainly by the appearance of news on the situation with coronavirus in China. To date, the number of deaths from the virus continues to grow, as does the number of new cases worldwide. This situation puts strong pressure on the entire range of risky assets.

Fundamental Brent analysis for February 11, 2020

Today, Brent quotes show some growth during the morning trading, although the risks of further decline are still elevated. Oil prices were supported by the comments of the Energy Minister of Kazakhstan that the OPEC+ countries intend to postpone the ministerial meeting from March to the end of February.

Last week, the OPEC+ Technical committee recommended that countries increase oil production by 0.6 million barrels per day in the second quarter of this year amid a decline in demand for raw materials from China. However, OPEC+ member countries have not yet expressed a unified position on this recommendation, which does not allow prices for «black gold» to demonstrate a steady recovery from local lows.

Today, you should pay attention to data from the American Petroleum Institute (API) on US crude oil reserves. Analysts expect an increase in reserves of 3 million barrels. If the forecast is confirmed, pressure on Brent will resume again.

EUR/USD. February 12, 2020 – Euro consolidated at 1.09 lows

The sentiment on global sites remains moderately positive in the face of a slowdown in the spread of coronavirus infection around the world. In recent days, experts have noted a decrease in cases of new diseases, which suggests that China's preventive measures have begun to bear fruit.

As a result, the pair's rate stabilized near the level of 1.0900. At the same time, the US dollar remains strong, having received support from yesterday's statement by J. Powell. The head of the US Federal Reserve noted that the US economy remains very stable, and the current monetary policy of the regulator is optimal in the current conditions.

Also, ECB President Christine Lagarde shared her vision of fiscal stimulus yesterday. The politician urged European officials to carefully study the possibilities of stimulating the economy through fiscal policy, since the ECB's zero rates do not really help to achieve the inflation target.

Thus, against this background, the US dollar looks more attractive for purchases. During the day, the pair will fluctuate slightly near the level of 1.09.

GBP/USD. February 13, 2020 – Sterling confidently broke through the level 1,30

The sterling is growing steadily today, breaking the level of 1.30 The pair is under the multidirectional influence of several factors at once. On the one hand, in the credit market, there is a decrease in the yield spread of 10-year UK/US government bonds, which is negative for the British currency.

On the other hand, macroeconomic data from the UK provided some support to the pound. Despite the fact that statistics for the IV quarter of 2019 showed stagnation of the economy, annualized growth was 1.1%. Analysts had expected a slowdown of 0.8%. Industrial production did not grow as much as analysts had expected, but Britain recorded an unexpected trade surplus in December amid a jump in metal exports (0.85B).

Thus, the pound is growing, the main goal of the «bulls» is the area near the level of 1.3050.

EUR/USD. February 14, 2020 – Euro remains in the lows of 2017

The euro continues to move within the downward channel near the 1.0840 mark. The sentiment in global markets remains moderately negative in the absence of new negative news on the spread of coronavirus in China.

The European currency is at the lows of 2017 under the pressure of weak macroeconomic data from Europe and a strong US dollar. The US currency received support from yesterday's inflation data in the United States, which reflected a slight acceleration in consumer prices in January (2.5% y/y versus 2.3% y/y). If today's data on retail sales and industrial production for January indicate the preservation of stable business activity in the US, the dollar will continue to grow to 1.0800.

EUR/USD. February 17, 2020 – Euro remains in the area of ​​two-year lows

The sentiment on global sites remains moderately optimistic amid the lack of negative news on the topic of coronavirus. The growth rate of new cases of diseases decreased again after the jump caused by the use of a new method for diagnosing the virus. As a result, the EUR/USD pair is trading at 1.0840, remaining in the area of ​​two-year lows.

Today's news background is calm, and in the week you should pay attention to the macroeconomic data block for January. PMI business activity indices in the European Union and the USA will be published on Friday. If statistics show deterioration, risky assets may again be under pressure.

Today, the pair will be trading primarily in a sideways manner near 1.0840.

EUR/USD. February 18, 2020 – Euro is under pressure after the release of data from Germany

Risky assets again came under pressure after Apple announced that it would not be able to fulfill its revenue plan in Q1 due to existing problems with shipments from China in the context of the coronavirus epidemic. An additional influence on investor sentiment was provided by reports that the US plans to limit technology exports to China to restrain Chinese technological development.

The pair EUR/USD remains in weak positions near 1.0830. In the daytime, German ZEW economic expectations and sentiment indices were published. The indicator unexpectedly dropped from 26.7 points to 8.7 points. Analysts had predicted a decline in the index only to around 21.5. Such statistics will put pressure on the euro during the day and may send the pair below 1.08.

USD/CAD. February 19, 2020 – Looney grows in anticipation of inflation data

Today, the USD/CAD pair is showing a decline after strong growth the day before. The instrument continues to move within the trading range of 1.32-1.33, reacting to the publication of macroeconomic data from the US and Canada.

Yesterday, the US dollar managed to grow to 1.3280 after the release of data on business activity in the manufacturing sector of the Federal Reserve Bank of New York: in February the index rose from 4.8 to 12.9 points. Statistics from Canada, on the contrary, reflected a decline in production sales in December by 0.7% m/m after a decline of 1% m/m last month.

However, today Canadian dollar began to grow in anticipation of data on the consumer price index of Canada, which will be published today in the evening. Experts expect annual inflation to rise to 2.3% in January against growth to 2.2% in December. If the forecast is confirmed, the likelihood that the Bank of Canada will decide to mitigate monetary policy will decrease significantly, and the Canadian dollar will receive an incentive for further growth.

EUR/USD. February 20, 2020 – Euro sideways at 1.08

The euro is moving horizontally at the level 1.0800. Market dynamics remain calm in the absence of negative news on the topic of coronavirus. The US dollar is still strong reacting to comments from the Fed on the stability of the US economy.

Thursday is not rich in significant events, the pair will continue to fluctuate slightly near the level of 1.08. Tomorrow you should pay attention to the publication of PMI indices in the EU and the US. If the indices turn out to be worse than expected, this could reduce the risk appetite on global markets at the end of the week.