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FOREX-Dollar at 4-month highs against euro on virus fear, economic outlook

Published 02/11/2020, 03:59 AM
Updated 02/11/2020, 04:00 AM
© Reuters.  FOREX-Dollar at 4-month highs against euro on virus fear, economic outlook

© Reuters. FOREX-Dollar at 4-month highs against euro on virus fear, economic outlook

EUR/USD
0.00%
GBP/USD
0.01%
AUD/USD
0.05%

* Coronavirus concerns boost safe-haven bid for dollar
* U.S. economic picture more bullish than eurozone's
* Australian dollar sinks to lowest since 2009

(Updates prices)
By Karen Brettell
NEW YORK, Feb 10 (Reuters) - The dollar hit a four-month
high against the euro on Monday as concerns about the
coronavirus boosted demand for safe havens, while a bullish
outlook for the U.S. economy and weak data in the eurozone made
the greenback more attractive than the single currency.
As of 0500 GMT on Monday, there had been 40,235 confirmed
cases reported in China and 909 deaths from the virus, as well
as 319 cases in 24 other countries, including one death.
Investors fear the spreading virus will dent the global
economic outlook.
Relatively strong economic data in the United States is also
making the greenback more attractive. Data on Friday showed that
U.S. job growth accelerated in January. By contrast, German industrial output recorded its biggest
fall in December since the recession-hit year of 2009, data on
Friday showed. Data on Monday also revealed that Italian
industrial output was much weaker than expected in December.
“We had much stronger-than-expected U.S. data, coupled with
much weaker-than-expected eurozone data,” said Win Thin, global
head of currency strategy at Brown Brothers Harriman in New
York.
At the same time, “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,” Thin said.
Political uncertainty in Germany is an additional headwind
for the euro.
Annegret Kramp-Karrenbauer, leader of Chancellor Angela
Merkel's Christian Democrats, on Monday confirmed she would not
run for chancellor in next year's federal election but added
that she would remain party chair until another candidate is
found. The euro EUR= fell to a four-month low of $1.0907, before
edging back to $1.0914. The British pound GBP= dropped to a
two-month low of $1.2870 before rebounding to $1.2917.
The Australian dollar AUD= sank to $0.6656, the lowest
since 2009, before rebounding to $0.6679. Australia's economy
tied closely to China's.

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========================================================
Currency bid prices at 2:48PM (1948 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.0914 $1.0943 -0.27% -2.64% +1.0957 +1.0910
Dollar/Yen JPY= 109.6500 109.7200 -0.06% +0.73% +109.8700 +109.5700
Euro/Yen EURJPY= 119.70 120.10 -0.33% -1.85% +120.3300 +119.6800
Dollar/Swiss CHF= 0.9769 0.9777 -0.08% +0.94% +0.9783 +0.9764
Sterling/Dollar GBP= 1.2917 1.2891 +0.20% -2.58% +1.2945 +1.2873
Dollar/Canadian CAD= 1.3318 1.3311 +0.05% +2.56% +1.3329 +1.3289
Australian/Doll AUD= 0.6679 0.6672 +0.10% -4.87% +0.6707 +0.6659
ar
Euro/Swiss EURCHF= 1.0663 1.0699 -0.34% -1.74% +1.0713 +1.0661
Euro/Sterling EURGBP= 0.8449 0.8492 -0.51% -0.06% +0.8504 +0.8443
NZ NZD= 0.6387 0.6400 -0.20% -5.18% +0.6417 +0.6383
Dollar/Dollar
Dollar/Norway NOK= 9.2896 9.2997 -0.11% +5.82% +9.3062 +9.2312
Euro/Norway EURNOK= 10.1393 10.1790 -0.39% +3.06% +10.1933 +10.1090
Dollar/Sweden SEK= 9.6612 9.6580 -0.26% +3.36% +9.6834 +9.6338
Euro/Sweden EURSEK= 10.5450 10.5722 -0.26% +0.72% +10.5890 +10.5406



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