The Kiwi dollar is on the downside once again, as after it peaked at 0.63950 cents against the US Dollar, it then managed to plummet down almost 1% to 0.63630 in the course of just one hour. During the rest of the day, it reached a low of 0.63530 twice before steadying off slightly.
The Euro only continues to drop lower and lower. When we looked at the EUR/USD pair on the 7th, it was at a 4-month low. When we revisited it just under a week ago, it had managed to hit a low not reached since April 2017. And now the Euro has dropped further still, sinking below the 1.0800 mark. It seemed to recover slightly, but has now dropped back down, leading to a 34-month low.
The Nikkei, or Japanese Stock Market Index, is down 1.6% after a fall of 330 points, marking a fourth straight day of losses.
The most obvious factor affecting this is the continuing fears of the coronavirus, which is affected all Asian markets as the severity of the virus only worsens.
As news regarding the coronavirus continues to worsen, at which point should we consider the fact that a global economic recession is a possibility?
In a surprising move for the British government, it has been revealed that Chancellor of the Exchequer Sajid Javid has resigned after he refused Prime Minister Boris Johnson’s order to fire five of his senior aides. He has been replaced by Rishi Sunak, and various other members of the Treasury cabinet have also been replaced.
When we last looked at the EUR/USD, it was at a 4-month low, and since then it has continued to fall. Over the past few days the Euro was at its lowest at 1.08660 against the US dollar, a low not seen since April 2017.
Following a brief recovery from its dip at the end of last month as fears concerning the coronavirus alleviated somewhat, the Australian dollar has since reached a decade low in the wake of the NFP release on Friday.
As we come to the end of the week and approach the biggest trading day of the month, aka the Non-farm payroll (NFP) release in less than 24 hours, investors seem to be pricing in a stronger US dollar ahead of strong expectations for the US economy. As a result, the Euro has fallen to its lowest since October 2019.
What a plunge for gold! Following a monumental rise for the yellow metal at the start of January, it since plateaued around 1570, but still appeared to be an attractive investment. However, after a month-high peak of 1589.45, it has now sharply declined over the past few days, dropping 1.5% and sitting below the 1553 mark, and looking to drop further still.
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