Concerns over the growing death toll in China from the Coronavirus have sent FX traders on the hunt for safe haven assets. That sent both the Swiss Franc and the Japanese Yen higher, while the Chinese Yuan hit a 1-month trough. Those worries also impacted trade-linked currencies including the Australian and New Zealand Dollars. The US Dollar is also benefiting from market jitters, especially given its comparatively higher interest rates. Among the G10 currencies, the greenback is thus far the best performer this month, and the only currency to have struck a 2-month peak.
As of 10:54 am in London trading, the NZD/JPY was trading lower at 70.836 Yen, a loss of 0.4539% and off the earlier trough of 70.732 Yen. The AUD/JPY was also lower, trading at 73.315 Yen, down 0.3669%; the pair has ranged from a low of 73.135 Yen to a peak of 73.719 Yen.
Great trade opportunities are waiting – don’t wait to profit from this pair!
In the UK, market players are on standby for the release of the policy decision of the Bank of England. Analysts are still expecting the rate to remain unchanged at 0.75% but the voting block is likely to be more biased toward another rate cut in the coming sessions. The BoE will also be releasing the minutes of the last meeting and, coupled with the statement and follow up commentary from the head of the BoE, Mark Carney, market players will better be able to gauge the timing of the next possible rate adjustment.