The double whammy of concerns over the Coronavirus infection and death rate in the US and the growing friction between the US and China are weighing on sentiment.
The US Dollar edged higher against many of its major rivals, finding support as a safe-haven currency as concerns over the US-Sino trade rift escalate along with fears of a worsening Covid-19 pandemic in the US. In the Eurozone, the Euro was able to hold onto recent gains versus the Pound Sterling and the greenback, shrugging off the latest surveys from German investors which failed to meet analysts’ expectations. The ZEW Survey of economic sentiment came in with a reading of 59.3, just off the 60 that analysts had predicted but off the previous reading of 63.4. The survey of the current situation was equally dismal, if not worse, with a reading of -80.9, improved slightly from the previous -83.1 but failing to meet the forecast of -65. The ZEW Survey for the Eurozone also missed the forecast with a reading of 59.6 against an expected 78.1.
As of 10:41 am in London trading, the EUR/USD was trading higher at $1.1363, up 0.1243%; the pair has ranged from a low of $1.13248 to a high of $1.13643. The EUR/GBP was trading at 0.9077 Pence, a gain of 0.5027% and off the session peak of 0.90862 Pence while the low was recorded at 0.90215 Pence.
The double whammy of concerns over the Coronavirus infection and death rate in the US and the growing friction between the US and China are weighing on sentiment. In terms of economic news, investors are concerned over the impact that yet another series of quarantines and lockdowns will have on the US economy, even as the disagreement over China’s handling of Hong Kong security issues threatens trade and stock markets globally. Those concerns have paradoxically resulted in a drive to the greenback for its safe-haven status, with the USD/JPY higher at 107.3080 Yen, a gain of 0.05%.