The US dollar is still trading strong against major currencies even as the risk sentiment in market improves, driving down the demand for safe haven currencies like the Japanese yen and the Swiss franc. At the time of writing, the US dollar index DXY is trading at around 98.00.

Even as the coronavirus outbreak remains in focus, markets received some relief after the WHO expressed confidence that the spread of the virus can be contained. So far, China has reported over 24,000 confirmed cases while the death toll has risen to 490.

The US dollar also remains supported by strong economic data releases, as new factory orders in the US climbed to the highest level in nearly 18 months during December. According to the US Commerce Department, factory goods orders rose by 1.8% in December after the 1.2% decline seen in the previous month.

The figure beat economists’ forecast which was for a rise of 1.2% for December, coming in higher on account of increased demand for defense aircraft. On a more positive note, business sentiment among manufacturers in the US has also improved following the signing of the US-China phase one trade deal, driving further strength in the US dollar.