The Japanese Yen is on track to record its worst week in more than two years as concerns over the Coronavirus sent FX traders to the US Dollar as a safe haven asset. The Yen is also coming under sell pressure as a result of the latest economic data, which was largely disappointing, coupled with fears over the Japanese economy relative to the fallout from the virus. Analysts say that the Yen's dubious outlook has caused investors to question its safe haven value with the Dollar and Swiss Franc enjoying renewed interest as a result. Since Wednesday, the Yen has lost nearly 2% of its value against the greenback.
As of 11:27 am in Tokyo, the USD/JPY was trading lower at 111.9280 Yen, down 0.11% and off the session trough of 111.918 Yen. The CHF/JPY was trading at 113.817 Yen, down 0.0211%; the pair has ranged from a low of 113.790 Yen to a high of 114.028 Yen.
Focus on PMI Reports
Markets' attention is expected to refocus from the Coronavirus to the slew of PMI reports that will be released later today in the Eurozone and the UK. The latest polls of economists shows they are predicting that Germany's preliminary PMI reports for January will show yet another decline, with the reading for the manufacturing sector falling to 44.8 and the composite to 50.8. The Eurozone PMI composite is similarly expected to fall to 51, with the manufacturing sector reading forecast with a fall to 47.5. In the UK, economists expect the market moving services sector PMI to see a drop to 53.4 from the previous 53.9. The EUR/USD was trading at $1.0789, up 0.026%, while the GBP/USD was higher at $1.2889, a gain of 0.0761%.