USD firms in response to Coronavirus concerns
Consumer sentiment concerning the coronavirus has moved back into negative bias across the globe, prompting investors to once again seek security in the Greenback versus what could be considered higher-risk currencies.
The Australian dollar as well as the Euro suffered as the USD rose once more, contrasting yesterday’s US dollar price slump against most currencies in what seemed, at the time, a recovery in most FX instrument prices.
As global stocks gave up two days of gains in response to the ever-present effects of the Coronavirus, the US dollar (seen as a safe-investment as compared to more speculative options) has once again risen in value as more investors buy-in to the commodity in times of economic strife.
The Euro fell almost half a percent in response to the failure of EU finance ministers agreeing on continual support for their economies suffering due to the virus pandemic.
The talks, which were designed to formulate a suite of measures to help companies and individuals cope with the effects of Covid-19 in the EU, were suspended until Thursday.
The US dollar will likely continue to rise in these moments of global economic insecurity, as it is seen as the most stable investment in the foreign exchange market presently.
The paradigm may shift.