On Monday, the United States dollar stalled against most currencies. Nevertheless, it continued to rise against the Japanese yen. Investors were digesting the fact that the rate of deaths from coronavirus in Europe slowed. However, in Asia and Japan, they accelerated.
While the New Zealand and Australian dollars rose, the yen fell. The Aussie and Kiwi tend to benefit from the sharper risk appetite while the traders are getting back to risk-oriented strategies.
Kit Juckes is the Societe Generale’s macro strategist. He said that the forex implication is that as the virus of Japan’s situation, worsens and equities are bouncing, the yen weakens.
Per the United States dollar, the Australian dollar rose 1.3% at 0.6071. Moreover, the greenback rose 0.7% to 109.38 yen, a 10-day high.
Versus the United States currency at 1.0805, the euro remained neutral. Against six major currencies, an index that tracks the dollar was also flat at 100.68.
Dollar and Euro Zone
Tomorrow the Eurogroup meeting will be held. Juckes said the game-changer for the euro would be some moves towards some version of ‘Coronabonds” at tomorrows’ meeting.
He added that he is not sure the euro has much home-grown potential for bouncing.
On Tuesday, Eurozone finance ministers will most probably converge with three quick options. Those options will be to support the economy during the coronavirus epidemic.
Italy reported its lowed daily death toll for more than two weeks, last Sunday. Germany reported its fourth straight daily drop in new cases, while France reported a slowing daily death toll.
On Monday, Indonesia confirmed 218 new infections. It is the most significant daily jump since the first cases announced a month ago.
As early as Tuesday, Japan will most probably declare a state of emergency, reports the media. There is a shortage of beds and a rise in cases that are linked to hospitals. This is pushing the medical system of Tokyo to the brink of collapse.
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