The US Dollar strengthened against the Euro and British Pound overnight but
eased slightly against the Japanese Yen and Swiss Franc, both boosted by haven
flows. It left the Dollar Index futures almost unchanged at New York’s
close.
In the developing market space, local Asian currencies continue to hold their own for now, despite concerns about a Wuhan virus-induced slowdown in the region. The retreat in regional currencies has been more of a slow grind than a full-blown charge for the exit, perhaps reflecting the currency market’s preference for more information on the evolution of the Wuhan virus situation. It also reflects the lack of extreme positioning evident in equity and bond markets.
USD/CNH continues to trade around 6.9800, unable or unwilling to test, and or break, the pivotal 7.0000 level. That implies that official selling interest lies in wait up here, helping to “calm” things.
Overall, US Dollar strength is expected to continue, boosted by yields and haven flows into US treasuries.
In the developing market space, local Asian currencies continue to hold their own for now, despite concerns about a Wuhan virus-induced slowdown in the region. The retreat in regional currencies has been more of a slow grind than a full-blown charge for the exit, perhaps reflecting the currency market’s preference for more information on the evolution of the Wuhan virus situation. It also reflects the lack of extreme positioning evident in equity and bond markets.
USD/CNH continues to trade around 6.9800, unable or unwilling to test, and or break, the pivotal 7.0000 level. That implies that official selling interest lies in wait up here, helping to “calm” things.
Overall, US Dollar strength is expected to continue, boosted by yields and haven flows into US treasuries.
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