The United States had substantial economic numbers. The fears about the latest coronavirus outbreak out in China a few weeks ago are ebbing. Thus, on Thursday, against the euro and two-week peaks versus the yen, the dollar climbed to four-month highs.
The Chinese government had efforts to contain the latest coronavirus and limit the economic fallout. Thus, investors’ risk tolerance increased. The Swiss franc and the safe-haven yen struggled for a fourth straight session against the dollar. In more than a week, the Swiss currency fell to its weakest level.
Xin Ping is President of the China and King Salman is King of Saudi Arabia. Xi Jinping told King Salman that China had achieved positive results in its prevention and control efforts in fighting the new coronavirus. That is what reported the Country’s official Xinhua on Thursday. That added more optimism in the market.
The People’s Bank of China (PBOC), pumped up hundreds of billions of dollars into the financial system this week. It was to cushion the potentially adverse economic impact of the virus.
The United States has Positive Numbers
Kathy Lien is the managing director of BK Asset Management in New York. She said that United States data has not been terrible for the most part.
She added that it looks like that virus is going to be contained, and it is just a matter of time. There is needed data to prove that the illness has a damaging impact on the economy. Meanwhile, the market will continue to focus on relatively good earnings. Also, the United States data is reliable.
Simon Harvey is an FX market analyst at Monex Europe in London. He said that they see a credible response from monetary authorities in China. Thus, it is soothing market fears of a more entrenched slowdown in the Chinese economy.
Nevertheless, in China, there are 28,000 confirmed infections and the Coronavirus claimed 563 lives.
It is a short summary of the market news for today.