Analysts say that the Japanese Yen as a safe haven asset could move lower on signs that global policymakers are prepared to proactively provide economic support. Analysts warn, however, that any confidence in the financial markets is still extremely fragile, and there is certain to be more turbulent days ahead that will, no doubt, weigh even more on already frazzled market nerves. Higher risk currencies like the New Zealand Dollar earlier got a boost from the NZ government which said yesterday that it would pump about 4% of its GDP into the economy there in an effort to shore up likely contractions and disruptions as a result of the Coronavirus spread.
As of 10:15 am in London, the NZD/USD was trading at $0.5973, a loss of 1.0197% and sliding from the earlier high of $0.60979. The AUD/USD was also lower at $0.6033, down 1.1375%; the pair has ranged from a low of $0.60295 to a peak of $0.61497. The USD/JPY was trading at 106.7020 Yen, up 0.76% and off the earlier session peak of 107.203 Yen.
ZEW Economic Surveys Tumble Hard
The Euro was weighed by the latest economic surveys of the business sector. The German ZEW survey for the current situation was significantly worst than expected at -43.1, down from the previous reading of -15.7; analysts had forecasted a decline to -30. The economic sentiment survey was also markedly lower at -49.5, well off the previous reading of 8.7. The Eurozone survey for economic sentiment was similarly depressing at -49.5, down from the previous survey which was recorded at 10.4. The EUR/USD was lower as a result at $1.1069, down 0.9884% and just off the session trough of $.10659.