Risk appetite fades as virus cases are on the rise again. The Australian dollar is waiting for data on the jobs market. The pound remains in a narrow range while waiting for the Bank of England meeting.
There was a spike in hospitalizations and new coronavirus infections in some parts of the United States over the last two weeks. This points to a troubling trend, as the cases were falling for more than a month.
The capital of China has canceled scores of flights. Moreover, it blocked off some neighborhoods containing a coronavirus outbreak. Thus, it has fanned fears of a broader contagion.
The situation in both China and the United States raised fresh concerns. These Concerns are about the risks of re-opening economic activity before a vaccine has been developed.
Extending a pull-back from the one-year high reached last week, the Australian dollar traded at $0.6878.
Before the release of Australian job data, later on, Thursday, many traders of the Aussie kept to the sidelines.
Australian Dollar and Others
Across the Tasman Sea, data showed that, in the first quarter, the Nez Zealand economy shrank by more than forecast. Thus, the New Zealand dollar eased slightly to $0.6449.
In Asia, the British pound got off to a quiet start. Nevertheless, later in the day, it will likely come into focus. This is because traders are bracing for the policy meeting planned by the Bank of England.
The BOE is forecasted to boost its quantitative easing program by $125 billion (100 billion pounds). Moreover, during concerns about the economic outlook, some analysts eye an even more significant increase.
Britain is now seeking a free trade agreement with the European Union. It originally left on January 31. Nevertheless, negotiators have made little progress so far. Thus, this raises the risk that both sides will fail to agree on a deal before the year’s end.
This is the current news of the market.