The U.S. Index, which measures the dollar strength against a basket of six currencies rose for the fourth consecutive session on Friday’s trading session. The index ended the session at 102.91 as worries over tightening liquidity ignited by the coronavirus pandemic drove investors towards cash.
The U.S. President Donald Trump approved disaster deceleration requests from New York and Washington, while St. Louis Federal Reserve President James Bullard said that unemployment could reach 30 percent unless the Fed intervenes fiscally.
According to analysts, investors are 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 almost reached 15000, the number of cases is approaching 350,000 and the economic fallout of what is in effect a global lockdown is spiraling.
In economic news, the U.S. Existing Home Sales for February which measures the change in the annualized number of existing residential buildings that were sold during the previous month came at 5.77 million besting expectations of 5.5 million, however, the revised number for January fell to 5.42 million.
Over in Europe, the Common currency was relatively flat on Friday’s session still under pressure by a strong dollar as investors are seeking the greenback. The Common currency was slightly higher against the U.S. Dollar to finish at 1.0694.
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 higher versus its counterpart, the U.S. Dollar, to settle at 1.1645 GBPUSD.
The Cable fell on Thursday’s session 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 was higher against the Japanese Yen, to end the session at 110.76 USDJPY. On the other hand, the Greenback fell slightly versus the Swiss franc to trade at 0.9854 USDCHF.
The Precious Metal Gold rose versus the U.S dollar to finish the session at 1498.70 per ounce, investors are unloading all assets in favor of the U.S dollar.
Elsewhere in Canada, the Loonie Dollar was higher versus the Dollar to finish at 1.4324 USDCAD the Canadian dollar is still under pressure 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 slightly higher at 0.5801 AUDUSD but still pressured by the virus epidemic concerns, moreover, The Kiwi Dollar was higher finishing at 0.5698 NZDUSD.
Cryptocurrencies ended the session lower, with Bitcoin finishing the session at 5938 BTCUSD, while Etherium Finished higher at 122.71.
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