Let’s check the international foreign market. Yuan is at 2-week low on virus fears, while the yen is at a 2-week high. As unemployment unexpectedly drops, the Australian dollar jumps. As rate cut bets subside, the pound is at a three-week peak.
On Thursday, the Chinse yuan weakened. Meanwhile, the safe-haven Japanese yen firmed. The spread of a virus in China worried many traders. After a surprise drop in unemployment, the battered Australian dollar jumped.
Flu-like coronavirus caused 17 deaths. Infected are almost 600 people. Wuhan is a city of 11 million people. China thinks that the virus outbreak started from there, from the animal market. The city is locked down.
There are modest currency moves. On Tuesday, it extended a push for safety. Nevertheless, it partially reversed on Wednesday.
Head of Research at Melbourne brokerage Pepperstone is Chris Weston. He said that yesterday they thought it was one sell-off and done. Nevertheless, today they had a bit of slap back to reality.
Yuan and Japanese Yen
The USD/CNH is up. It is because people see signs that there needs to be some stimulus on the back of this. As people see, this impacts economics.
Against the falling yuan, the dollar hit its most active in two weeks. The currency traded at 6.9254 midsession.
The Japanese yen is seen as a haven virtue of Japan’s position as the world’s largest creditor as investors sought safety, the Japanese yen rose 0.2% to a two-week high of 109.56 per dollar.
Yields on benchmark 10-year United States Treasuries also edged lower. It is a two-week trough as the bond price rose.
The United States dollar raised a bit against the New Zealand dollar and euro. It was otherwise firm against a basket of currencies edging up to 97.552.
Later on Thursday, The World Health Organization will make a choice. The choice of whether or not to declare the situation a global health emergency.
It is leading news for today.