Dollar dips vs yen as investors reach for safe havens on virus scare
The U.S. dollar slipped against the safe-haven Japanese yen on Friday as investors fretted over concerns that a spreading virus from China would curb travel and hurt economic demand.
Against the yen, which tends to draw investors during times of geopolitical or financial stress given Japan’s status as the world’s largest creditor, the dollar was 0.22% lower at 109.24 yen.
“The dollar and yen rallied modestly in New York trade on Friday, with safe-haven buying the main driver into the weekend,” Ronald Simpson, managing director, global currency analysis at Action Economics, said in a note.
“Nerves were ramped up some as the coronavirus outbreak appeared to have worsened,” Simpson said.
Japan’s Nikkei Index Lower, Demand for Safe-Haven Yen Rises as Coronavirus Fears Increase
The Yuan fell in offshore trade on Monday as the death toll in China from the spread of a pneumonia-like virus mounted.
Coronavirus crisis accelerates and knocks down risk, focus on German IFO
Concerns over the China Coronavirus rapid spread intensified, as the death toll rose to at least 80 and 2744 cases confirmed while the contagion spilled over across the Chinese borders to the US, Australia, Thailand, Mongolia and South Korea.
Risk-off was at full steam in Asia, with USD/JPY downed to over a two-week low of 108.73 before it recovered the 109 level. The traditional safe-haven, Gold, gapped up and reached $1589, the highest since January, 8.
According to Trading Central (3rd party RIA) the USDJPY could be heading DOWN to 107.65 if it does not go ABOVE 110.25.
* Past performance is not a guarantee of future performance
https://europefx.tradingcentral.com/Product?PK_ANALYSE=10591007
| Number of Lots: | Required Margin: | Risk Management (200%): | Potential Profit/Loss 107.65 |
|---|---|---|---|
| 1 | € 3,021.24 | € 6,042.48 | € 1,170.30 |
| 5 | € 15,106.20 | € 30,212.39 | € 5,851.50 |
| 10 | € 30,212.39 | € 60,424.79 | € 11,703.00 |
| 25 | € 75,530.98 | € 151,061.97 | € 29,257.50 |
| 50 | € 151,061.97 | € 302,123.93 | € 58,515.00 |
According to Trading Central (3rd party RIA) the EURJPY could be heading DOWN to 118.20 if it does not go ABOVE 121.30.
* Past performance is not a guarantee of future performance
https://europefx.tradingcentral.com/Product?PK_ANALYSE=10591010
| Number of Lots: | Required Margin: | Risk Management (200%): | Potential Profit/Loss 118.20 |
|---|---|---|---|
| 1 | € 3,333.33 | € 6,666.67 | € 1,743.00 |
| 5 | € 16,666.67 | € 33,333.33 | € 8,715.00 |
| 10 | € 33,333.33 | € 66,666.67 | € 17,430.00 |
| 25 | € 83,333.33 | € 166,666.67 | € 43,575.00 |
| 50 | € 166,666.67 | € 333,333.33 | € 87,150.00 |
