Focus remains on coronavirus as emerging Asian currencies weaken on risk sentiment
The Thai baht and South Korean won led declines in FX following reports of additional coronavirus cases. In South Korea, over 1,000 new patients were diagnosed with the illness. The US Centers for Disease Control and Prevention are warning Americans that there could be a outbreak here as cases across the Middle East, Europe and Asia raise concern.
“I’m always perpetually out of my comfort zone.”
February 26, 2020
EUR/USD 1.0878 GBP/USD 1.2939 USD/CAD 1.3292 AUD/USD 0.6575 USD/JPY 110.38 USD/CNH 7.0369 USD/ILS 3.4318 USD/MXN 19.2660 USD/CHF 0.9749 USD/INR 71.91
The Bloomberg Dollar Index is up slightly as the dollar gains on the yen, pound, and South Pacific currencies. The dollar continues to be supported by the risk-off sentiment caused by coronavirus.GBPSterling fell ~0.6% on news that talks between the EU and UK are off to a rough start. The currency hit a low of 1.2914.EUR
EUR/USD closed above 1.09 yesterday and briefly traded higher. The pop higher for the euro is attributable to option demand and renewed sentiment that there will be fiscal stimulus in the eurozone.CAD
The loonie weakened against the US dollar as the market sentiment remains in risk-off. The fear that has been fueled by the coronavirus has caused support for safer currencies such as the dollar and Swiss franc.ASIA/PACIFICConcerns over the impact of coronavirus has caused the Australian dollar to weaken further, hitting a fresh 11-year low. USD/JPY moved higher after falling the last three sessions. The Bank of Japan made an announcement to Japanese banks to be prepared for the impact of the spreading coronavirus.