US Dollar in Favor as Markets Worry About Coronavirus
Arslan Butt • 1 min read
Early on Tuesday, the US dollar remains to trade steady against other major currencies and remain and favour as a safe haven currency over rising uncertainty in markets about the potential economic fallout of the coronavirus outbreak around the world. At the time of writing the US dollar index DXY is trading around 98.85.
Coronavirus fears continue to dominate the market sentiment after China confirmed that over 1,000 people have died while the number of cases have crossed 42,000. Earlier on Monday, the WHO also raised concerns about the spread of the virus in countries outside of China becoming a greater cause for worry.
In addition, the US dollar remains supported over strong economic data releases from the US lately. While risk currencies are suffering, US Treasury bond prices have witnessed a steady increased so far this year also helping boost the demand for the greenback.
China’s economy is highly likely to suffer a setback this year due to the coronavirus epidemic. Considering that China accounts for 17% of the world’s GDP it is very possible that global economic growth is also expected to slow down in 2020.