Dollar Edges Higher as Virus Fears Ease; Euro Weakens

Friday,   24-Jan-2020   03:10 PM (IST)

The U.S. dollar is showing some strength against the safe haven Japanese yen Friday as a degree of calmness returns to traders who have fretted all week over the new pneumonia-like virus in China. Elsewhere, the euro has shown weakness after the European Central Bank indicated no immediate movement from its current monetary policy stance at Thursday’s meeting. President Christine Lagarde told Bloomberg Friday insisted that the bank is not on "autopilot" but others were skeptical. Overnight, The number of cases of patients infected with the new virus as of January 23 has gone up to 830 in China, while the death toll from the virus has risen to 25, the National Health Commission announced on Friday. Late Thursday, the World Health Organization stopped short of calling the virus a global health emergency, even as the number of cases of patients infected with the new virus topped 800 in China, with the death toll rising to 25.  President Christine Lagarde’s comments did not imply any increased reservations towards using any of the tools at the ECB’s disposal, the note said. “If downside growth risks increase again in the coming months, as we expect, the market should not have any problems pricing in a higher risk of further stimulus measures.” With the outlook for growth being so important in the ECB's eyes, traders will focus on the various PMI data due for release Friday, and in particular the German manufacturing PMI number, due at 3:30 AM ET (0830 GMT).