Forex Marketz Daily Forex News – Fully Markets Update
The safe haven Japanese yen soared during the Asian trade session. U.S. Treasury yields fell and export and commodity linked currencies took a pounding.
Forex traders became spooked as the number of COVID-19 cases jumped worldwide and Italy took extreme measures to contain the spread in their country.
The yen jumped better than three percent against the U.S. dollar. The headline USD/JPY currency exchange rate hit a low price point at 101.69 yen this morning. This is this Forex market’s lowest price point in three tears and its largest daily loss since 2016.
Against the yen the Australian dollar and New Zealand dollar each shed around five percent.
Tokyo expressed concerned as the Japanese currency strengthened. As an export nation, a strong local currency is not good for trade as their products become more expensive.
The EUR/USD Forex market also caught a bid. The euro was up 1.4 percent to trade at $1.1452. Against the euro, the commodity and export linked currencies like the Australian and New Zealand dollars also fell. Both were down two percent against the euro.
The dollar was also weakened as Forex traders looked for the safety of U.S. Treasuries. This sent yields lower and the dollar followed suit.
Yen and Currency Traders Worry about COVID-19 Headlines
The number of COVID-19, coronavirus, cased has topped 107,000 around the world. The contagion is now being reported in more countries and there are over 500 cases in the United States.
Over the weekend, Italy quarantined a quarter of their population until 3 April. Italy, the European Union’s third largest economy has been hard hit by the outbreak. Their hospitals are under extreme pressure.
Traders were also not very happy as Saudi Arabia vowed to cut prices and increase production. This sent the price of the black gold falling lower. At one point the headline oil contracts were down 30 percent.
U.S. Treasury yields fell half a percent as traders looked for the safety of U.S. debt. This sent prices higher. Prices and yield move in opposite directions.
