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News Article for Financial Website

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Since the devastating news about the coronavirus virus outbreak in China, the dollar fell against the safe-haven yen on Friday. When investors were encouraged from progress made by the Chinese government to contain the virus, the yen rose after four days of selling.

Data shows that nonfarm payrolls have increased by over 200,000 jobs last month. Employment at construction sites have dramatically increased since the occurance of milder temperatures. Reuters forecasted that payrolls would rise by 160,000 jobs in January.

The Canadian dollar fell to a new low against the greeback which most likely stemmed from the coronavirus outbreak. This influenced reduced bets for a Bank of Canada interest rate cut. The chances that the Bank of Canada will cut interest rates by April have dropped below 40%. In January, Canada added 34,500 jobs. This is double what the market had originally expected. Unemployment has now drastically dropped to 5.5%. On Friday, the Canadian dollar traded .3% lower at 1.3309 to the greenback.

Late morning trading showed the dollar dropped .4% against the yen. The dollar index decreased to 98.47 when measuring currency against rivals. The coronavirus has created major uncertainty in the market and many wonder if global data in January can be sustained throughout February. On Friday, China’s death toll rocketed to 637 and has now spread to other countries.

Mainland China has experienced many shutdowns due to the safety concerns that surround the virus. Toyota factories are continuing their shutdown even though they were anticipated to open at an earlier date. The United States and Chinese presidents are committed to upholding the Phase One trade deal.

Gold prices are increasing. On Friday, gold traded at $1,565. The price of gold is generally impacted by a variety of factors, but US job data or nonfarm payrolls can greatly influence its direction. Interest rate expectations and yields can easily drive spot gold prices.

Although job increases can cause the market to fluctuate, so can global health epidemics. In addition to China’s mainland scare, more citizens abroad are increasingly worried about the spread of viral contamination. The Global Times, however, has reported that the rate of infection has decreased. Worldwide, the death rate from the coronavirus is 2% while in Wuhan, it is 4.1%. With unsubstantiated claims that vaccines may be available, markets have chosen to believe the story which adds risk to the stocks. Although several companies are expected to reopen their doors on Monday, many workers are encouraged to work from home.

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