The US Dollar was able to keep most of the gains its made overnight though worries over the Coronavirus pandemic have kept market players on edge. On a global basis, the virus has been reported in at least 140 countries, with nearly 200,000 confirmed cases and more than 7,500 deaths. The Japanese Yen also saw some solid gains, despite the central banks efforts to coordinate massive liquidity injections into the global money supply. The continued decline of global equity markets, another fallout of market fears, is also ratcheting up demand for safe haven assets. Analysts say that, despite the almost complete liquidation of holdings, there is still a strain on global funding, which is what is causing market jitters.
As of 10:06 am in London trading, the USD/JPY was trading at 107.2800 Yen, a loss of 0.29% and moving away from the session trough of 106.747 Yen. The EUR/JPY was trading lower at 118.125 Yen, down 0.2381%; the pair has ranged from a low of 117.630 Yen to a high of 118.610 Yen. The GBP/JPY was also lower at 129.047 Yen, down 0.5371% and off the session low of 128.759 Yen.
Higher risk currency pairs have been hit hard by market fears, despite the efforts of the respective central banks to minimize those concerns. The NZD/USD was trading at $0.5882, down 1.1378%, while the NZD/JPY was at 63.076 Yen, down 1.5072%. The RBNZ cut it’s cash rate to 0.25% earlier this week. Meanwhile, the AUD/USD was trading lower at $0.5960, down 0.8702%, while the AUD/JPY was at 63.8562 Yen, down 1.2724%. The Reserve Bank of Australia will be announcing its monetary policy decision tomorrow and analysts are predicting it will announce the beginning of a Quantitative Easing program in an effort to bolster the local economy.