Japanese Yen in Favor as Risk Sentiment in Markets Weighed Down by Increasing Coronavirus Cases - Forex News by FX Leaders
Japanese Yen in Favor as Risk Sentiment in Markets Weighed Down by Increasing Coronavirus Cases

Japanese Yen in Favor as Risk Sentiment in Markets Weighed Down by Increasing Coronavirus Cases

Posted Friday, February 14, 2020 by
Arslan Butt • 1 min read

The Japanese yen continues to trade strong against the US dollar early on Friday as the risk appetite in markets remains subdued over concerns about the potential economic fallout of the coronavirus outbreak. At the time of writing, USD/JPY is trading around 109.81.

The risk sentiment soured in the previous session after the Chinese province of Hubei reported a sudden increase in the number of infected cases as well as the death toll. For now there remains considerable uncertainty in markets about the extent of the impact that the virus is expected to have on economic growth in China as well as in the rest of the world.

According to a recent Reuters poll economic growth in China is expected to slow down to the weakest pace seen since the 2008-09 financial crisis during the first quarter of 2020. Economic growth in China can only rebound once the virus is effectively contained.

Markets continue to trade uncertain over concerns that China could possibly be under-reporting infected cases and death toll from the virus. On Friday, Hubei reported an additional 4,800+ infected cases and 116 more deaths due to the virus.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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