Today, at the auction, European currencies did not quite decide on the direction. The pair is growing slightly, adding only 0.05%. The pair is growing more significantly, the British pound is rising against the US dollar by 0.42%. The Swiss franc is declining against the dollar, but very slightly.
The threat of the consequences of the spread of the coronavirus is still prevailing over foreign exchange markets, although optimistic news is already emerging on this topic. Reuters reported that in China, some of the enterprises that suspended their operations due to the threat of the coronavirus epidemic are already gradually resuming production. Some foreign companies that own factories in China, including car giants Daimler and Ford Motor, have also resumed operations.
However, today the UK Department of Health has declared the Chinese coronavirus a “serious and immediate threat” to the population, given that there are already eight patients in the UK. The statement of British doctors was quickly picked up in Brussels: EU authorities also today called coronavirus a threat to the EU economy.
In Switzerland, data on inflation and unemployment for January came out in the morning. There were no surprises: unemployment in January remained at 2.3%, and annual consumer price inflation rose by 0.2%, as expected by the market.
We believe that today the single European currency until the end of the trading day will sluggishly fluctuate in the range of 1.094-1.096 dollars per euro. Today, there are no more significant signals for the growth of the euro against the dollar.
Natalia Milchakova, Deputy Director of the Alpari Analytical Department