In the Asian trading session, the US Dollar managed to regain its status as a safe haven currency. That was due, in large part, to the Federal Reserve Bank announcement on Thursday. In an effort to bolster confidence in the wake of the Coronavirus pandemic, the Fed surprised investors with 
news of a total $1.5 trillion injection in liquidity. The liquidity injection will be in three tranches of $500 billion each for short-term (one-month and three-month) repo operations. Though the knee-jerk reaction was expected, currency strategists don’t believe the sentiment shift will endure as the injection isn’t expected to benefit US economic activity in any meaningful way. The European Central Bank also made a policy decision on Thursday; the ECB announced new stimulus and assurances to help small and mid-sized businesses, even as it decided to hold interest rates at the current levels. The announcement largely disappointed FX markets and left the Euro under pressure, as a result.
As of 9:51 am in Tokyo, the EUR/USD was trading lower at $1.1160, a loss of 0.0743% and not far off the session low of $1.11518. The USD/JPY was up at 105.0050 Yen, a gain of 0.015%; the pair is ranging from a trough of 104.492 Yen to a peak of 105.209 Yen. The GBP/USD was lower at $1.2521, down 0.4475% and off the session low of $1.25069.
FX players are dubious that the Dollar can maintain positive sentiment, given the lack of clarity from the White House regarding efforts to slow the spread of the Coronavirus. Moreover, recommendations from health officials to avoid close contact in order to “flatten the curve,” especially in large groups, have resulted in a number of closures and cancellations, some unprecedented. That situation is being played out around the world, and analysts warn that the potential economic loss of revenue could be staggering with a significant hit to GDP.