Single currency plumbs new lows on ECB........>

FOREX: Single currency plumbs new lows on ECB sources

- MNI's report that the chances are rising of an ECB rate cut on data and

coronavirus concerns added extra weight to the single currency Tuesday,

pressuring EUR/USD to fresh multi-month lows and narrowing the gap with key

support at $1.0879. EUR/USD put demand really picked up following the headlines,

with $3 in puts trading for every $2 in calls in the subsequent few hours.

- Fed's Powell released his semi-annual policy testimony to Congress, but there

was little new that hasn't already appeared in recent Fed communications. As a

result, recent trends extended, with US equity futures knocking at new alltime

highs, which deflated the JPY and CHF further. GBP initially traded well as GDP

data fared better than forecast, but was dragged lower after BoE's Carney warned

that the BoE may provide more stimulus if a post-election economic bounce fails

to materialise.

- Eurozone industrial production is the data highlight Wednesday and speeches

are also due from ECB's Lane and Fed's Harker. Fed's Powell also speaks again in

front of the Senate Banking Panel.