Currency market update on March 9

Currency market update on March 9

In times of turbulence, the best thing that you can do – stay oriented. Hence, let’s have a look at currency pairs and see “who does what” so you can have a tactical perspective. Specifically, we will identify the lowest spots and the high ground of the current disposition in Forex - both are best seen through the prism of the JPY.

USD and EUR: giving ground to the true safe-haven in Japan

Unlike a while ago, the JPY, even despite internal economic challenges in Japan and external damage from the coronavirus, now enjoys the status of the primary safe-haven currency. Both the USD and the EUR lost value significantly against the Japanese yen, which now trades at 102.25 against the US dollar and at 116.90 against the euro. Both currency pairs are at tactical lows, with the USD/JPY testing the supports of 2016. Given the fact that the virus is now more active in other countries rather than China itself, there is a solid reason to expect JPY to grow further against the other currencies.

11.png

AUD and NZD: the weak link

Among other currencies, the AUD and NZD suffer the worst damage. Especially, against the JPY. The AUD/JPY dropped to the lows of 20008, while the NZDJPY is testing the support of late 2012. That is due to the fact that both Australia and New Zealand have a large part of their exports tied to China, which in turn takes a big chunk of their GDP. Hence, the subdued consumption in China takes a direct shot at these economies reducing the value of their respective currencies. And JPY, as it is currently superior to the USD as a reserve currency, gives the strongest contrast to the depreciation of the AUD and NZD. Hence, both currency pairs are expected to stay at rock-bottom levels and probably go further below.

22.png

                                                                                        LOG IN

Similar

Latest news

Deposit with your local payment systems

Learn more

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in 00:30:00

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera