Euro and Sterling Gain Modestly; Dollar Remains Strong
FEBRUARY 21, 2020
The U.S. dollar was mostly unchanged overnight, with the Dollar Index remaining at a four-month high.
There is plenty on today’s docket that will give the dollar an opportunity to break out of its overnight slumber. At 9:45 a.m., Markit’s manufacturing and service PMI are expected to show an expansion, but slower growth than January. Existing home sales will cross the wire at 10 a.m.
There are also six Fed speakers on today’s docket including Dallas Fed President Robert Kaplan and Fed Vice Chair Richard Clarida.
What to Watch Today…
- Markit PMIs at 9:45 a.m.
Complete Economic Calendar can be found here.
The Euro finally found some relief and traded off its 3-year lows versus the greenback on strong data. Markit Eurozone flash manufacturing, services and composite PMI all beat expectations. German manufacturing and composite PMI also rose, but the service reading showed worrisome signs. Despite the slight pop higher, EUR/USD is still within striking distance of its 2017 lows.
For the third day, the sterling will attempt to rise after strong data. The beleaguered currency failed to do so the first two days but is holding on to gains in early trading. Markit’s U.K. February preliminary manufacturing and composite prints beat expectations. Despite today’s rise, the sterling is nearly a full percent weaker against its American counterpart this week.