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2020.03.3012:28:00UTC+00U.S. Dollar Higher On Virus Fears

The U.S. dollar advanced against its major counterparts in the European session on Monday, as investors rushed to safe-haven assets amid worries that shutdowns related to the outbreak could last for months.

Recession worries resurfaced as Spain became the third country to surpass China in coronavirus infections after the United States and Italy.

Together, Spain and Italy have registered around half of the world's total COVID-19 deaths, which according to Johns Hopkins University, have crossed 34,000.

As new infections in U.S. soar, the White House on Sunday warned that a total of 100,000 to 200,000 Americans could eventually succumb to the virus in a worst-case scenario in two weeks coinciding with Easter weekend.

"It's possible. It's entirely possible that would happen if we don't mitigate. What we're trying to do is to not let that happen," America's top infectious diseases doctor, Anthony Fauci said at a White House briefing in the Rose Garden on Sunday.

The pandemic has already driven the global economy into recession and countries must respond with "very massive" spending to avoid a cascade of bankruptcies and emerging market debt defaults, IMF chief Kristalina Georgieva said Friday.

The greenback climbed to 108.24 against the yen, from near a 2-week low of 107.12 seen at 10:15 pm ET. The next possible resistance for the greenback is seen around the 110.00 level.

The greenback rebounded to 0.9574 against the franc, following a decline to 0.9502 in the Asian session, which was the lowest since March 17. If the greenback rallies again, 0.98 is seen as its next resistance level.

The greenback gained to 1.1045 per euro, compared to 1.1132 hit late New York Friday. The greenback is likely to locate resistance around the 1.08 level.

Survey from the European Commission showed that Eurozone economic confidence logged its strongest monthly decline on record in March as the spread of coronavirus weighed across all sectors.

The economic confidence index fell sharply to 94.5 in March from 103.4 in February. However, the reading was above economists' forecast of 91.6.

The greenback strengthened to 1.2317 against the pound and held steady thereafter. At Friday's close, the pair was worth 1.2449.

Data from the Bank of England showed that UK mortgage approvals increased to a more than six-year high in February.

The number of mortgages approvals rose to 73,546 in February from 71,344 in January. This was the highest level since January 2014.

The greenback was up against the loonie at 1.4147. Next immediate resistance for the dollar is seen near the 1.46 level.

The greenback held steady against the aussie and the kiwi, after rising to 1.6113 and 0.5993, respectively in the Asian session. The greenback had ended last week's deals at 1.6165 against the aussie and 0.6040 versus the kiwi.

U.S. pending home sales for February are due in the New York session.



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