(24 March 2020)DAILY MARKET BRIEF 2:EUR/USD remains capped below the 1.08 mark

<p>In Europe, both manufacturing and services PMI are expected to print their sharpest fall on record in March, after the coronavirus shutdowns took a toll on businesses and public life across the old continent.</p>
<p>Services PMI in the UK is expected to fall to 45 in March, but we already know that this number is subject to a significant downside correction from next month as the UK finally announced a complete three-week lockdown to stop the virus from spreading.</p>
<p>The US dollar index advanced past the 102 mark as safe haven inflows left emerging market currencies and cross-asset markets to feed into the US dollar. At this point, the greenback is the safest haven play provided that most global transactions are denominated in US dollars and the fundamental dollar demand can only fade to a certain level.</p>
<p>Hence, the euro remains capped below the 1.08 mark against the US dollar and soft PMI data could give a further support to the bears and encourage a deeper sell-off toward the 1.05 mark.</p>