On Monday, the 10th of February 2020, the American dollar spiked to a fresh four-month peak against its eurozone counterpart as overwhelming worries of a fast-spreading coronavirus, death toll of which had already topped 1,000 in less than two weeks, had been stoking demands of safe-haven currencies and commodities, while a bundle of US economic data released last week that brightened outlook of the US economy coupled with bleaker eurozone data had sharply spearheaded the US Dollar greenback.
Aside from that, following WHO (World Health Organization) remark that the spread of coronavirus outside China could be the “tip of the iceberg,” the American dollar greenback became more lucrative as investors appeared to be ditching out riskier commodities and currencies to bet heavily on US dollar amid a moderate pace US economic expansion entering into its 128th straight months of gains.
Meanwhile, referring to a stronger-than-anticipated US economic data last week including an addition of 225,000 non-farm payroll jobs in January alongside a bleaker eurozone outlook, a global head of currency strategy at Brown Brothers Harriman in NY, Win Thin said on Monday’s (February 10th) market wrap-up, “We had much stronger-than-expected U.S.
data, coupled with much weaker-than-expected eurozone data. We have the safe-haven bid from the coronavirus. That is killing EM and really benefiting the dollar, and to a lesser extent the yen and Swiss. ” Citing statistics, on Monday’s (February 10th) FX market, bloc’s single currency was dropped to a four-month low of $1.0907 before wrapping up the day at $1.0914 against its American counterpart, while the British Pound slid to a two-month low against the US Dollar to $1.2870, however, winded down the day at $1.2917.
Apart from that, a closely observed indicator for the health of Chinese economy, Australian Dollar fell to a decade low figure $0.6656 against its American counter, however, managed to wind down the day at $0.6679.