Despite weakening slightly against the pound, the dollar was still strong across the board yesterday and is still strong this morning as coronavirus worries continue.
Concerned by the number of growing COVID-19 cases in the US, where the reported cases are nearly double those in China, investors are turning to the dollar as a safe option compared to other riskier currencies.
As part of a series of measures, the Federal Reserve launched a programme to pump more dollars into the world economy, in order to support the smooth functioning of the markets.
Yesterday’s house sales data also helped to boost the dollar, showing a 2.4% growth where the markets had been expecting -1%. Today, we’ll see a series of data releases for the US, including Manufacturing PMI, which is expected to show that the sector has contracted.
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