Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  News  >  Economy & Forex  >  All News

News : Economy & Forex
Latest NewsCompaniesMarketsForexCryptocurrenciesCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies / ForexCryptocurrenciesEconomic EventsPress releases

Euro sinks against dollar as U.S. assets look more attractive

share with twitter share with LinkedIn share with facebook
share via e-mail
02/13/2020 | 02:42pm EST
Pound and euro banknotes are seen in this illustration

The euro dropped to more than two-year lows against the dollar on Thursday as concerns about a sharp rise in the number of new cases in the coronavirus outbreak in China led investors to seek out U.S. assets.

The United States is better placed to weather the economic impact of the virus than the eurozone.

The coronavirus death toll in China's Hubei province increased by a record 242 on Thursday to 1,310, with a sharp rise in confirmed cases after the adoption of new methodology for diagnosis, health officials said.

"Europe, and Germany in particular, have very strong trade linkages to Asian markets, and specifically with China," said Mazen Issa, senior FX strategist at TD Securities in New York. "Coming into the year, expectations were for a moderate growth rebound. While it did seem reasonable at the time, the disruptions are going to delay that narrative."

The euro dropped as low as $1.0835, the lowest since May 2017. It breached technical support at the October low of $1.0877 on Wednesday. That leaves the currency vulnerable to further losses, analysts said.

The single currency also fell against the safe haven Swiss franc to 1.0610 francs, its lowest level since August 2015.

The Japanese yen gained against the dollar to 109.78 yen.

The greenback has benefited against the euro from a popular carry trade, where investors borrow in low-yielding currencies such as the euro and invest in dollars or other higher-yielding currencies.

Expectations that central banks will hold rates low, and may provide more accommodation if the coronavirus harms the global economy, is supporting risk appetite and may reduce the likelihood of a sharp selloff in stocks.

"The perspective is that rates will remain low, and that is cushioning some of the downside on the equity side," Issa said.

Stocks overcame earlier weakness to hit record highs on Thursday. They have set a record closing high every day this week.

U.S. data on Thursday showed that U.S. underlying consumer prices picked up in January as households paid more for rents and clothing, supporting the Federal Reserve's contention that inflation would gradually rise toward its 2% target.

(Editing by Will Dunham)

By Karen Brettell

Stocks mentioned in the article
ChangeLast1st jan.
AUSTRALIAN DOLLAR / CANADIAN DOLLAR (AUD/CAD) 0.14% 0.87506 Delayed Quote.-3.64%
AUSTRALIAN DOLLAR / JAPANESE YEN (AUD/JPY) 0.03% 72.341 Delayed Quote.-4.44%
AUSTRALIAN DOLLAR / NEW ZEALAND DOLLAR (AUD/NZD) 0.13% 1.04255 Delayed Quote.0.14%
AUSTRALIAN DOLLAR / SWISS FRANC (AUD/CHF) -0.10% 0.63908 Delayed Quote.-4.91%
AUSTRALIAN DOLLAR / US DOLLAR (AUD/USD) 0.15% 0.6558 Delayed Quote.-5.84%
BRITISH POUND / AUSTRALIAN DOLLAR (GBP/AUD) -0.03% 1.96997 Delayed Quote.4.14%
BRITISH POUND / JAPANESE YEN (GBP/JPY) 0.00% 142.519 Delayed Quote.-0.51%
CANADIAN DOLLAR / JAPANESE YEN (CAD/JPY) -0.10% 82.665 Delayed Quote.-0.74%
EURO / AUSTRALIAN DOLLAR (EUR/AUD) 0.04% 1.66253 Delayed Quote.3.09%
EURO / JAPANESE YEN (EUR/JPY) 0.07% 120.277 Delayed Quote.-1.51%
EURO / SWISS FRANC (EUR/CHF) -0.05% 1.06253 Delayed Quote.-2.23%
JAPANESE YEN / SWISS FRANC (JPY/CHF) -0.12% 0.8824 Delayed Quote.-0.66%
MITSUI & CO., LTD. -3.76% 1869 End-of-day quote.0.92%
MITSUI FUDOSAN CO., LTD. -3.51% 2821.5 End-of-day quote.-0.18%
NEW ZEALAND DOLLAR / JAPANESE YEN (NZD/JPY) -0.06% 69.383 Delayed Quote.-4.57%
SUMITOMO CORPORATION -2.82% 1601.5 End-of-day quote.1.46%
SUMITOMO MITSUI FINANCIAL GROUP, INC. -3.04% 3640 End-of-day quote.0.72%
SUMITOMO REALTY & DEVELOPMENT CO., LTD. -1.01% 3813 End-of-day quote.0.82%
UNITED STATES DOLLAR (B) / CHINESE YUAN IN HONG KONG (USD/CNH) 0.09% 7.02511 Delayed Quote.0.85%
US DOLLAR / CHINESE YUAN RENMINBI (USD/CNY) 0.04% 7.0174 Delayed Quote.0.74%
US DOLLAR / JAPANESE YEN (USD/JPY) -0.13% 110.274 Delayed Quote.1.47%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news "Forex"
10:18pJPMorgan names veteran Gori as new Asia Pacific chief executive
10:17pWaymo joins backlash against California self-driving data requirement
10:16pFacebook to ban misleading ads about coronavirus
10:09pAsian stocks slide deeper as pandemic fears grow
10:05pAsian stocks slide deeper as pandemic fears grow
09:52pDovish BOJ board member urges policy review, stronger steps to avert recession
09:22pOil falls for fifth day as coronavirus spreads outside of China
09:20pDollar holds advantage as coronavirus spread unsettles investors
09:16pNEWS HIGHLIGHTS : Top Global Markets News of the Day
09:16pNEWS HIGHLIGHTS : Top Company News of the Day
Latest news "Forex"