The U.S. Index, which measures the dollar strength against a basket of six currencies continued to rise on Thursday’s trading session. The index ended the session at 102.64 as worries over tightening liquidity ignited by the coronavirus pandemic drove investors towards cash.
According to analysts, everyone is liquidating their assets to keep their money in dollars due to the unprecedented amount of uncertainty caused by the virus epidemic which if continued could threaten to paralyze the economy.
Meanwhile, the coronavirus continues to spread as countries adopt extreme social restrictions trying to contain the outbreak.
The global death toll has exceeded 10000, the number of cases is approaching 250,000 and the economic fallout of what is in effect a global lockdown is spiraling.
In economic news, the U.S. Philadelphia Fed Manufacturing Index which measures the relative level of general business conditions in Philadelphia came at negative 12.7 significantly lower than expectations of 10 and the previous reading which came at 36.7.
Over in Europe, the Common currency Fell on Thursday’s session pressured by a strong dollar as investors are seeking the greenback. The Common currency was lower against the U.S. Dollar to finish at 1.0654.
The European central bank has tried to offset the Euro decline by announcing a new asset purchase program but failed to lift the price.
In the economic space, Germany Ifo Business Climate Index which measures the current German business climate and measures expectations for the next six months came at 87.7 lower than expiations of 95.3 pressuring the Common currency lower.
The Great British Pound was lower versus its counterpart, the U.S. Dollar, to settle at 1.1480 GBPUSD.
The Cable fell after Bank of England cut its interest rate to 0.1 percent estimates were expecting the BoE to maintain the rate at 0.25 percent.
Regarding Safe-Haven assets, the Greenback rose against the Japanese Yen, to end the session at 110.69 USDJPY. moreover, the Greenback rose versus the Swiss franc to trade at 0.9860 USDCHF.
The Precious Metal Gold fell versus the U.S dollar to finish the session at 1472.33 per ounce as investors are unloading all assets in favor of the U.S dollar.
Elsewhere in Canada, the Loonie Dollar was lower versus the Dollar to finish at 1.4517 USDCAD pressured by the fall of oil prices which fell sharply due to the coronavirus spread.
In Asia, the Aussie Dollar which is a proxy for the Chinese Yuan finished the session lower at 0.5742 AUDUSD pressured by the virus epidemic concerns, moreover, The Kiwi Dollar was lower finishing at 0.5664 NZDUSD.
Cryptocurrencies ended the session higher, with Bitcoin finishing the session at 6224 BTCUSD, while Etherium Finished higher at 135.11.
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