The dollar was weak against a basket of currencies yesterday as coronavirus prompted further concern about an interest rate cut from the Federal Reserve. This follows Jerome Powell’s statement that the Fed would ‘act as appropriate’. The markets have now priced in a rate cut this month and two more this year.
Data revealed that manufacturing grew at a particularly slow pace in February due to the coronavirus disrupting supply chains, bringing down output and new orders.
Today we’ll hear speeches from two Federal Reserve officials. The next stage of the Democratic Primaries, ‘Super Tuesday’, will also begin today, when 14 states will vote for the Democratic presidential candidate.
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