The Dollar is almost flat despite solid data; The IMF sees prospects “very disturbing”

By Alex Ho

The us dollar index was little changed on Thursday morning despite the release of economic data solid.

The us dollar index, which tracks the greenback against a basket of other currencies was little changed at 97,312 at 09.40 am.

The data for February showed an increase to 57.3, beating expectations of 54.9. This is the highest value of the index for the services sector since February 2019.

Prior to the publication of the report on the non-agricultural employment, the labour market, private sector has generated 183 000 jobs in February, which exceeded expectations.

The pair GBP/USD rose 0.2% to $ 1,2891. The uncertainty on the trade negotiations between the United Kingdom and the European Union remained at the centre of concerns, while the expectations for interest rate cuts the british increased.

The pair AUD/USD was little changed at 0,6626. The department of the Treasury australian said on Thursday that there was still no recession, but that the coronavirus is expected to clear half a percentage point to growth in the first quarter.

The pair USD/JPY has lost 0.2% to 107,28 after the director-general of the International Monetary Fund (IMF), Kristalina Georgieva, has stated that the global economic outlook have evolved into “scenarios more disastrous” because the coronavirus has spread without being detected.

“In terms of our projections, we unfortunately found the last week a change to a scenario that is more adverse for the global economy,” said Georgieva reporters at a briefing in Washington on Wednesday.

“The virus is spreading, unfortunately, without being detected, more than we originally thought,” said Georgieva. “As soon as it became clear that it is no longer only China, and perhaps a small number of countries in Asia surrounding China, the outlook on the potential consequences have been modified”.

The IMF announced an aid of $ 50 billion to combat the sars coronavirus. The money is available “immediately” and is intended for low-income countries and emerging countries, according to Georgieva.

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