Daily Currency Update

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The Greenback trades sideways as we await Fed speeches and more news regarding the coronavirus.

USD - United States Dollar

The volatility in the currencies is mixed this morning, and the Greenback is trading slightly lower, losing ground against safe-haven currencies. On the economic release side, the December FHFA house price index, S&P Case-Shiller home prices, February consumer confidence, and Richmond Fed manufacturing index will be released this morning

U.S. President Donald Trump said a coronavirus vaccine is "very close"; however, this morning, the demand for Japanese Yen continues as demand for havens rose amid concerns about the ability to prevent the coronavirus from spreading, along with its potential economic impact.

Later today, at 3:00 pm, Fed's Clarida speaks at NABE Conference in Washington, which might create some volatility in the U.S. dollar crosses.

Key Movers

The British Pound is gaining against the Euro in a relatively quiet turnaround. However, in the case of the EUR/USD pair, it is down 0.11 percent after market participants are pricing in a ten basis points ECB cut in 2021 as the virus spreads. For the Pound, it is a positive day, increasing 0.32 percent at the time of this writing as ministers from European Union member states are due to sign off on a negotiating mandate for trade talks with the U.K. However, the tension in both sides is soaring.

In Asia, Japanese Prime Minister Abe said that Japan is aiming to halt the domestic spread of the coronavirus. At the same time, the Ministry of Finance Vice-Minister Yoshiki Takeuchi blamed the virus as the reason for the increase in currency volatility.

The Dow fell by more than 1,000 points yesterday on its worst day in more than two years, erasing all of 2020's gains. Most news headlines say that coronavirus fears finally broke the stock market's momentum; of course, the big winner was the Yen yesterday.

Expected Ranges

USD/CAD: 1.3267 - 1.3300 ▼

EUR/USD: 1.0834 - 1.0860 ▲

GBP/USD: 1.2959 - 1.3018 ▲

AUD/USD: 0.6585 - 0.6624 ▼

NZD/USD: 0.6301 - 0.6349 ▼