Forex Marketz Daily Forex News – Fully Markets Update
The U.S. dollar remained firm against the Japanese yen during the Asian trade session today.
Forex traders are starting to unwind safe haven positions as China is responding to the coronavirus in a bid to stem the spread of the infection. This boosted sentiment, but the mood remains weak
The coronavirus has now claimed its first life in Hong Kong. On the mainland, in China, there have been another 65 deaths which brings the total up to 490. The number of cases, worldwide, is now at 24,342..
The World Health Organization (WHO) continues to reiterate that it is possible to contain the spread of the deadly coronavirus. China, which has seen 99% of the known cases, has implemented drastic quarantine measures. Beijing has also injected about 1.7 trillion yuan to insulate their financial markets.
Even as the dollar strengthened against the safe haven Japanese yen, the yen stemmed losses as traders remain cautious.
The headline USD/JPY currency exchange rate is near a 1 ½ week low price point at 109.43 yen. The trade exposed Australian dollar gained 0.7 percent overnight against the U.S. currency. The AUD/USD Forex market last traded at 0.6733.
Dollar and Forex Traders wait on Key U.S. Labor Data and ISM Services PMI
On the U.S. economic calendar, Forex traders will be following a number of high impact events. This includes key labor data from the ADP non-farm labor change. The Institute for Supply Management (ISM) non-manufacturing purchasing managers’ index (PMI) will also be released today.
Both the ISM non-manufacturing PMI is closely watched by traders. The services sectors makes up the largest portion on the U.S. economy’s gross domestic product. Both the ISM services PMI and the ADP labor data will affect Friday’s closely monitored non-farm payroll report (NFP).
The United Kingdom will publish January’s final services purchasing managers’ index (PMI). Affecting the British pound, as well, the Eurozone will publish a number of final services purchasing managers’ indices (PMI) from Italy and the Eurozone.
