Euro widens gains to two-week high as US treasury yields plummet
EUR/USD rose in European trade for the fifth straight session to two-week highs as US treasury yields plummeted while the German Government considers more stimulus measures for the European economy.
EUR/USD rose 0.6% to 1.0945, the highest since February 10, with an intraday high at 1.0881.
EUR/USD inched up yesterday in the fourth straight profit on strong prospects for a Fed rate cut in June.
The dollar index fell 0.5% on Thursday for the fifth straight session to two-week lows at 98.67, as US treasury yields hit record lows at 1.297.
The rapid spread of the coronavirus across the world is hurting global sentiment and raising bets on a US rate cut to bolster the economy.
Financial futures now indicate a 100% probability for a Fed rate cut in June, compared to just 50% a week ago.
Asia opens mostly lower as coronavirus spreads rapidly outside China
Asian stock indices opened the fourth session of the week mixed but mostly lower, with Japan, Australia, New Zealand, Hong Kong, and South Korea down, wile Chinese stocks eked out gains.
Earlier New Zealand data showed the trade deficit at 340 million dollars, compared to a surplus of 384 million in December.
South Korea's central bank maintained rates with no change, subverting expectations of a rate cut as cases there surged to 1,500.
Japanese Prime Minisrer Shinzo Abe asked for putting off all sports or cultural gatherings for two weeks to contain the virus, while noting the economy is improving well.
Abe asserted his government is still preparing for the Tokyo Olympiad 2020 despite reports of a possible cancellation.
The World Health Organization said the coronavirus is still containable, adding the death toll hasn't surged out of control yet and it's still too early to call it a global epidemic.
China's CSI 300 rose 0.26%, while Shanghai climbed 0.14% to 2,992.
Hong Kong's Hang Seng slid 0.83%, while South Korea's KOSPI dropped 0.73% to 2,061.
New Zealand's NZX 50 shed 0.67%, while Australia's S&P/ASX 200 fell 0.91% to 6,647.
Gold rises past $1,650, dollar off three-year high
Gold futures titled higher in Asian trade as the dollar index fell from April 2017 highs, ahead of US labor, GDP data and speeches by Fed officials today, while investors assess the global spread of the coronavirus.
As of 04:09 GMT, gold futures due in April rose 0.57% to $1,652 an ounce, while the dollar index shed 0.05% to 98.97.
From the US, GDP is expected up 2.1% in the fourth quarter, while GDP prices are estimated up 1.4%, same as before.
Durable goods orders fell 1.5% In January, while core orders rose 0.2%.
Unemployment claims for the week ending February 15 are expected up a thousand to 211 thousand, while existing home sales are estimated up 2.8%.
US authorities said they identified a coronavirus victim who hasn't traveled to China or made contact with any other victim, sparking further concerns.
South Korea's central bank maintained rates with no change, subverting expectations of a rate cut as cases there surged to 1,500.
The World Health Organization said the coronavirus is still containable, adding the death toll hasn't surged out of control yet and it's still too early to call it a global epidemic.
USD/JPY backs off ten-month peak
USD/JPY fell off April 2019 highs for the fourth session out of six, ahead of US data and multiple speeches by Fed officials today, while investors assess the global spread of the coronavirus.
As of 06:09 GMT, USD/JPY shed 0.35% to 110.04, with an intraday low at 109.97.
Japanese Prime Minisrer Shinzo Abe asked for putting off all sports or cultural gatherings for two weeks to contain the virus, while noting the economy is improving well.
Abe asserted his government is still preparing for the Tokyo Olympiad 2020 despite reports of a possible cancellation.
From the US, GDP is expected up 2.1% in the fourth quarter, while GDP prices are estimated up 1.4%, same as before.
Durable goods orders fell 1.5% In January, while core orders rose 0.2%.
Unemployment claims for the week ending February 15 are expected up a thousand to 211 thousand, while existing home sales are estimated up 2.8%.
US authorities said they identified a coronavirus victim who hasn't traveled to China or made contact with any other victim, sparking further concerns.