Data signaling slowdown of coronavirus improves risk sentiment
The latest data out of China has signaled that the spread of the coronavirus may be slowing, causing markets to shift towards a less risk-off sentiment. The Reserve Bank of New Zealand kept interest rates unchanged but surprised markets by signaling that the central bank would not cut rates this year. NZD/USD popped on this news, strengthening about 1%.
February 12, 2020
EUR/USD 1.0907 GBP/USD 1.2961 USD/CAD 1.3261 AUD/USD 0.6742 USD/JPY 110.05 USD/CNH 6.9723 USD/ILS 3.4171 USD/MXN 18.6229 USD/CHF 0.9760 USD/INR 71.3512
USDThe US dollar remained steady as Treasuries fell. Risk sentiment continued to improve on data that signals the slowdown of the coronavirus spread.GBPSterling climbs for a third day against the US dollar after earlier this week hitting levels not seen since November. The economic data out of the UK has been much better since the election in December, supporting the currency’s move higher.EUR
EUR/USD continues to hover above the 1.09 handle. ECB Chief Economist Philip Lane stated that the coronavirus outbreak can have “a pretty serious short-term hit” on the economy. He also stated that there will be “a lot of uncertainty.”CADThe Canadian dollar strengthened against the greenback on signals that the coronavirus spread may be slowing. The loonie hit a 2020 low against the USD on Monday, rebounding and trading up toward 1.3265.ASIA/PACIFICThe central bank of New Zealand surprised markets by signaling there will not be a rate cut this year. RBNZ stated that unless the coronavirus outbreak has a bigger-than-expected impact on the economy, the central bank rates will remain the same. NZD/USD rose 1% on the news. The Australian dollar also strengthened for the third day being pulled by the kiwi's strength. The Japanese yen continues to consolidate under the 109 handle as news on the coronavirus develops.
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