The dollar remained strong yesterday as investors continued to turn to safe haven currencies amid the coronavirus outbreak. Hundreds of foreign nationals are being evacuated from Wuhan as more deaths and cases are confirmed.
The Federal Reserve concluded their FOMC meeting yesterday evening, where they unanimously agreed to keep interest rates on hold. Jerome Powell told the media that ‘the current stance is appropriate to sustain moderate economic growth, a strong labor market and inflation returning to our 2% goal.’ He noted that there were some signs of global growth improving, but that uncertainties remain. The impact of coronavirus was also highlighted, although Powell noted that it is too early to know the true impact, but that ‘clearly there will be implications at least in the near-term… We’ll have to see what the macroeconomic effects will be on the rest of the world’.
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