Investors once again were battered by the rise in the number of new coronavirus cases across the globe, especially in the US, Italy, and Japan. The US dollar was on a sell-off with the Treasury yields even after news that US President Trump won the Michigan Republican primary. Also weighing on the market’s trade sentiment were calls of the resource shortage in the US labs. Asian equities flashed red while gold prices recovered.
The Bank of England (BOE) unexpectedly cuts its bank rate by 50bps from 0.75% to 0.25%, in a surprise move to cushion the blow of the coronavirus on the economy. This resulted in fresh selling pressure and a sharp drop in Pound. The rate cut will help keep firms in business and jobs. BOE will publish policy minutes on March 13 at 1200 GMT.
The sentiment across the financial markets will remain driven by the risk trends and coronavirus updates.
NOTE: Traders are advised to be cautious and be updated on the major economic news causing high volatility to achieve better trading results.
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