US Dollar Getting Stronger as Markets Fear Coronavirus Impact on Corporate Earnings
Arslan Butt • 1 min read
The US dollar continues to trade bullish near three year highs over rising tensions in Asian markets after China as well as South Korea reported higher number of infected cases of coronavirus. At the time of writing, the US dollar index DXY is trading at around 99.84.
Uncertainty remains high in financial markets that the continued outbreak could affect corporate earnings of leading global companies with supply chains in China. Equity markets especially in the US and Europe are experiencing massive sell-offs as investors opt for safe haven instruments across the board.
So far, the US dollar index has gained around 0.8% this week against other major currencies not only because of its safe haven appeal but also because of recent economic data releases that point to sustained growth in the US economy despite external risks. Markets anticipate that the DXY could be on its way to take out the key resistance at 100.30 if tense conditions continue on account of the coronavirus.