Forex Marketz Daily Forex News – Fully Markets Update
The U.S. dollar was firmer against the Japanese yen as solid economic data out of the United States boosted the appeal of the greenback. Sentiment linked currencies, like the Australian dollar also gained ground.
Forex traders are still watching the rising death toll from the coronavirus and trying to gauge the economic damage it will cause.
Against the safe haven Japanese yen, the U.S. dollar gained ground. The headline USD/JPY currency exchange rate is near a two week high price point at 109.87 yen.
The EUR/USD Forex market was last trading at 1.0994. This is just below a one week low price point set overnight.
The AUD/USD Forex market gained about 0.1 percent during the Asian hours.
Overnight, there was a solid economic data out of the world’s largest economy. The January private ADP non-farm payroll change to cross the wires, and was stronger than expected as most sectors in the U.S. added jobs.
There was also a better than expected ISM non-manufacturing purchasing managers’ index (PMI). Finally, the January U.S. trade deficit also fell. This is the first decline in six years that the import side of that report has fallen.
Forex Traders Monitor Coronavirus Headlines but the Dollar gets a Boost
In China, another 73 people have died from the virus outbreak. This, to date, is the deadliest one day increase since the outbreak began. The total death toll is now at 563.
The total number of those infected is standing at 28,018. Most cases are in China.
However, the big news is that drug makers are playing down reports that a vaccine has been discovered. That news had boosted trader sentiment.
China is doing everything they can to contain this viral infection. They have closed entire cites in and intercity transportation has been restricted.
However, this will still have a negative impact on China’s first quarter gross domestic product.
Economists are already lowering projections. Also, regional and global supply chains are being severely disrupted. This could bring new support for the yellow bullion, at some point.
