Home News Forex Today: EUR/USD falls toward Macron gap, Pound enjoys Javid jump, US consumer, coronavirus eyed – FXStreet

Forex Today: EUR/USD falls toward Macron gap, Pound enjoys Javid jump, US consumer, coronavirus eyed – FXStreet

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Here is what you need to know on Friday, February 14:

EUR/USD is extending its slide, trading closer to the “Macron Gap” from April 2017. Investors see the glass half empty as recent data have been disappointing. Moreover and contrary to the US and the UK, Germany and other countries are holding back on spending. The largest economy in the eurozone is around stall-speed.

GBP/USD remains on high ground after Prime Minister Boris Johnson forced the now-former Chancellor of the Exchequer Sajid Javid out. Rishi Sunak, the new treasurer, is set to work more closely with No. 10 and open the door fiscal spending, especially on infrastructure. Government stimulus relieves the Bank of England from the pressure to cut rates, thus pushing the pound higher. The budget planned for March 11 may be delayed. 

See GBP/USD has more room to run after the reshuffle rally

Coronavirus: The number of cases nears 63,000 on the second day after authorities in China changed its counting methodology, adding CT scans in addition to lab tests. Larry Kudlow, a senior adviser at the White House, has expressed disappointment from Beijing’s level of transparency on the respiratory disease.

Markets temporarily dipped on Thursday amid a leap in cases but recovered swiftly. Nevertheless, the safe-haven yen and gold have retained some of their safe-haven gains.

The US consumer is in focus later today. Retail Sales figures for January are set to show another month of growth in sales. Later, the University of Michigan’s Consumer Sentiment Index for February is also forecast to point to high confidence. On Thursday, inflation surprised with the Core Consumer Price Index holding at 2.3% yearly. 

Oil prices have stabilized with WTI topping $51 despite ongoing tensions within the OPEC+ group. 

Cryptocurrencies are on the back foot after challenging new highs. Bitcoin is trading closer to $10,000.

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