Forex Marketz Daily Forex News – Fully Markets Update
The almighty U.S. dollar index has firmed as political tension continue to simmer between the United States and China.
The U.S. currency is a safe haven Forex asset and traders are looking for safety as geopolitical tensions now add to economic stress from the Covid-19 pandemic.
These renewed tensions could derail the fragile trade war truce between the world’s two largest economies. President Donald Trump and his Secretary of State, Mike Pompeo, have blamed China for releasing the Covid-19 pandemic “accidently” and for understating the damage being done.
The Secretary of State has said that there is a significant amount of evidence” that Covid-19 came from a lab located in Wuhan. This was the originating area of the coronavirus pandemic.
These tensions are hurting risk appetite in the global financial markets and supporting safe haven asset classes like the dollar, Japanese yen and gold.
Looking at USD/JPY Forex market, the dollar was down against the yen. This currency exchange rate was last down 0.2 percent to trade at 106.72 yen.
Dollar Traders Monitor Heightening Global Tensions
The U.S. has accused China of “accidently” releasing the Covid-19 virus from a lab in Wuhan. President Donald Trump has also warned that China could face sanctions, which in turn, could derail the fragile trade war cease-fire. This is supporting safe haven asset classes as risk appetite starts to switch back off.
The World Health Organization (WHO), however, has said that there is no proof of the coronavirus being made in a laboratory. The WHO has also said that the United States Government has offered no evidence to support their accusations.
Traders Wait on Key U.S. ISM Services PMI Data
The U.S. will release monthly Institute for Supply Management (ISM) purchasing managers’ index (PMI) today. The U.S. is also releasing final monthly services purchasing managers’ index data.
In the Eurozone, France is releasing their government balance budget and Spain will publish their monthly unemployment change. The United Kingdom will release final services PMI data and Canada published their monthly trade data.
