US Dollar in Favor as Markets Worry About Coronavirus

the US dollar remains to trade steady against other major currencies and remain and favour as a safe haven currency over rising uncertainty

US Dollar in Favor as Markets Worry About Coronavirus

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.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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