- Japanese yen among top performers on Monday on the back of risk aversion.
- US dollar posts mix results, DXY rebounds, erasing losses.
The USD/JPY has been falling constantly over the last four hours and recently it accelerated the decline. It printed a fresh one-week low at 107.61. It remains near the lows, under pressure.
The yen is rising across the board and it strengthened after the American session as Wall Street extended losses. The Dow Jones is falling 2% and the Nasdaq 0.75%. Crude oil gains 1% after weekend’s production cut agreement. US yields are moving sideways, despite the decline of USD/JPY.
Market sentiment will likely continue to be the key driver. No new economic data from the US will be released on Monday. On Wednesday, retail sales and industrial production reports are due. “In the US, the first effects of the coronavirus will certainly be clearly visible in a host of indicators for March due to be released this week. Industrial production might have shrunken 2.5% while retail sales could have registered their worst monthly decline on record. Housing starts, for their part, may have held up better during the month, but they are also expected to drop drastically in April”, explained analysts at National Bank of Canada.
Regarding the coronavirus, US President Trump mentioned is his decision when to open up the economy and that a decision “will be made shortly”.