The euro sunk to a 33-month trough against the Swiss franc on Tuesday as traders bought the safe-haven franc in droves due to fears about the coronavirus and how it will continue to impact the global markets. The EUR/CHF pair has historically been one of increased volatility during times of uncertainty, and with fears about the virus spreading and no cure in sight, recent days definitely qualify as uncertain times. The euro has plummeted 1.6 percent against the franc so far this month and it is likely to head lower before the month ends later this week.
In the meanwhile, health officials have called for calm, and Chinese officials claimed on Tuesday morning that the virus has been contained. Though the death toll has risen steadily in recent days and new cases were reported across the globe, health officials have implemented measures to stop the spread of the virus, which officials from Northern Europe’s branch of International SOS claim are already working.
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The dollar index climbed during the European trading session after holding stable during the Asian session. The index was up 0.11 percent to 98.06 .DXY as of 12:51 p.m. GMT. The dollar gained marginally against the yen, trading at 109.07. The greenback also strengthened against both the British pound and the euro. The pound slid 0.261 percent against the dollar to $1.2019, while the euro was down 0.082 percent to $1.1007. The Australian dollar was also lower, thanks to its extra exposure to China, and it was trading down 0.089 percent against the dollar to 0.6754.
Following the news that the virus has been contained, safe-haven gold eased off its three-week peak. Gold futures were down 0.304 percent to $1,572.60 per ounce, and silver prices were down 0.84 percent to $17.905.
Today marks a day filled with earnings reports on Wall Street, with reports before the bell from Harley-Davidson, United Technologies, Pfizer, 3M and others.