It was just another tumultuous week for the stock markets as the coronavirus took its toll on the greenback. Economic data was unable to ease the pain.
It was a relatively busier week in the economic schedule, in the week up to 6 March.
A total of 66 statistics were monitored, up from 59 the week before.
Of the 66 statistics, 27 were provided with forecasts, with 28 economic indicators lagging behind forecasts. 11 statistics were in line with forecasts during the week.
Take a closer look at the figures. 27 of the statistics reflected an upward trend compared to the previous figures. Of the remaining 39 statistics, 33 statistics reflected a deterioration from the previous ones.
It was another particularly bearish week for the greenback as markets responded to the emergency rate cut by the FED and a second rate cut later in the month.
Economic data from the U.S. faded into the background this week as economic uncertainty caused the Dollar to lose its safe haven status.
From the U.S.
It was a relatively busy first half of the week. Economic data included the Private Sector PMIs for February and the Non-Farm Payrolls (ADP) figures.
According to the market’s preferred ISM survey, the manufacturing PMI fell from 50.9 to 50.1.
While the manufacturing sector faltered, the ISM non-manufacturing PMI rose from 55.5 to 57.3, in stark contrast to the Markit survey which reported a 49.4 services PMI.
ADP figures were also positive, with 183,000 non-farm payrolls added in February.
In the second half of the week, the focus was on factory orders and government employment figures.
While factory orders declined by 0.5% in January, non-farm payrolls were impressive, rising from 273,000 in February. The increase led to a fall in the unemployment rate to 3.5%, while the employment rate remained stable at 63.4%.
Outside of the numbers and of greater significance, however, was the emergency 50 basis point cut by the FED on Tuesday.
Ultimately, however, there are doubts as to how much influence monetary policy support will have as governments and central banks try to cushion the blow of the coronavirus.
The U.S. government also approved $8.3 billion in emergency funding to fight the coronavirus outbreak, which also failed to prevent a reversal of the situation by the end of the week.
In the equity markets, the Dow rose 1.79%, with the S&P500 and the NASDAQ up 0.61% and 0.10% respectively.
The rally came despite two consecutive days in the red at the end of the week, with a sell-off on Friday despite the impressive NFP figures…
From the United Kingdom
It was a relatively quiet week on the economic calendar.
Among the most important statistics were the final PMI figures for manufacturing and services, and the PMI figures for construction in February.
The February figures were positive, despite the fact that both the final PMI figures for manufacturing and the services sector were revised downward from previous years.
Although the markets had priced in a BoE rate cut over the course of the month, the most recent figures suggest that a further cut is likely.
BoE government Carney had previously stated that the BoE is willing and able, but will move only when it is necessary…
Outside the statistics, the brexite chatter did not succeed in shaking the pound, although the brexite talks did not make any progress. Fishing was the stumbling block of the week…
During the week, the pound rose 1.75% to $1.3048, while the FTSE100 ended the week down 1.79%. Mining and natural resources stocks weighed heavily on the index, with a stronger pound providing further downward pressure.
Outside the Euro-Zone
It was a busy week on the economic data front.
Private Sector PMIs, Retail Sales, and Germany were once again the focus of the week.
However, the statistics had a muted impact on the EUR and the major European Boers.
The Euro-Zone Composite PMI rose from 51.3 to 51.6 in February, supported by the activities of the service sector. An increase in retail sales and a 5.5% rise in German factory orders were also positive for the EUR.
During the week, the focus continued to be on the Coronavirus, and statistics did not yet reflect the impact of the virus on the economy,
On the monetary and fiscal policy front, doubts about the support provided by the ECB and the Member States weighed on the major European indices.
However, for the EUR, a