Dollar Rises as Virus Concerns Ease
On Friday, the US dollar is demonstrating some strength versus the safe-haven Japanese yen.
It was as a degree of composure reverts to traders who have upset all week over the new pneumonia-like disease in China.
Meanwhile, the dollar has risen 0.1% versus the yen. It is with USD/JPY pair trading at 109.54.
Moreover, the US Dollar Index Futures that tracks the greenback versus a basket of other currencies inched up 0.1% to 97.53.
On the flip side, the euro has displayed a weak point. It was after the European Central Bank signaled no urgent movement from its current monetary policy stance at Thursday’s conference.
In a piece of forex news, President Christine Lagarde indicated that he claimed that the bank is not on “autopilot,” but others were uncertain.
To add, Berenberg Bank chief economist Holger Schmieding stated in a research note, “As long as the economy rebounds as expected, with the stimulus in the pipeline. The ECB will hold off any major policy adjustments until it has completed its policy review.”
Meanwhile, an analyst at Nordea indicated in a research note, “The ECB will closely monitor inflation, highly accommodative monetary policy is still required, and the ECB stands ready to use all instruments. In other words, the easing bias remains in place.”
“The EUR is not about to receive assistance from the ECB policy any time soon,” they added.
Further Movements in the Forex Market
Elsewhere, the EUR/USD pair traded 0.1% softer at 1.1048 with EUR/GBP pair down 0.1% at 0.8417.
Overnight, the figure of instances infected with the new infection has moved up to 830 in China. The measure was as of January 23.
Also, the death toll from the disease has soared to 25, the National Health Commission declared on Friday.
Late Thursday, the World Health Organization prevented short of calling the infection a global health emergency.
It is even as the number of incidents of patients contaminated with the new virus surpassed 800 in China. The death toll is also increasing to 25.
In a statement, Tedros Adhanom Ghebreyesus, the WHO’s director-general, said, “Make no mistake, this is an emergency in China, but it has not yet become a global health emergency.”
The note also indicated that President Christine Lagarde’s comments did not suggest any heightened reservations. It is towards using any of the tools at the ECB’s removal.
To add, the note disclosed, “If downside growth threat rises again in the coming months, as we anticipate, the market should not have any problems pricing in a higher risk of further stimulus measures.”
However, traders will focus on the variety of PMI data due for release on the same day.
It is with the outlook for development being so crucial in the ECB’s eyes. To be, in particular, the German manufacturing PMI number.
Get the latest economy news, trading news, and Forex news on Finance Brokerage. Check out our comprehensive trading education and list of best Forex brokers list here. Subscribe now and receive FREE updates on the market today!