Weekly market review February 17 to 21, 2020

February 17, 2020
Weekly market review February 17 to 21, 2020

Latest News: Gold price, Currency Review, Forex forecast, Oil price, Stocks

In the previous market review February, week 10 to 14 market participants were focused on the dynamics of the spread of coronavirus. As of Friday, 1384 deaths and over 64 thousand infected with coronavirus were registered.

However, the White House stated that they doubt the statistics provided by the Chinese authorities. On such background, demand for safe-haven assets has increased, in particular for gold, the price of which reached the 10-day maximum on Friday.

Euro reached 33-month minimum against the dollar amid political uncertainty in Germany and a stronger dollar. German Defense Minister Annegret Kramp-Karrenbauer stepped down as chief of the ruling Christian Democratic Union party and refused to run for the German Chancellor.

The pound strengthened on Thursday amid news of the resignation of UK Treasury Secretary Javid due to disagreements with Prime Minister Johnson regarding the need to increase government spending.

The growth of the pound was caused by the expectations that spending will be increased under the new Treasury Secretary, which will support the British economy.

The price of oil recovered part of the lost positions, reaching a 2-week maximum. An emergency meeting of energy ministers of OPEC + member countries did not take place due to the position of Russia, which has not yet been decided on the need for additional production cuts.

If an agreement is reached by OPEC + to cut production by 600 thousand barrels per day, the price of “black gold” is likely to continue to rise.

Main events of the market review February, week 17-21

On Monday, data on GDP and industrial production in Japan will be presented.

UK employment data will be released on Tuesday. The quarterly earnings report will be published before the market open by Walmart, which owns the world’s largest retail chain.

On Wednesday, data on inflation in the UK, USA and Canada will be published. The minutes of the last Fed meeting will be published as well.

On Thursday, the People’s Bank of China will hold a meeting and data on employment in Australia and retail sales in the UK will be published.

On Friday, the consumer price index in Japan, manufacturing, and services PMI’s in the UK, eurozone and the United States will be published, as well as data on retail sales in Canada.

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Categories: Analysis

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