NZ PM Ardern: New Zealand must prepare for the virus getting through the border

Anil Panchal FXStreet

New Zealand’s (NZ) Prime Minister (PM) Jacinda Ardern recently crossed wires, via Reuters, increasing the odds of the coronavirus (COVID-19) resurgence in the nation.

Key quotes

NZ must prepare for the virus getting through the border.

Elimination strategy will stay in place.

First response may be localized lockdowns.

Now is not the time for a New Zealand- Australia travel bubble.

FX implications

Considering the recent risk-on sentiment, driven by upbeat equities and hopes of virus vaccine, NZD/USD refrains from stepping back on the news. That said, the kiwi pair remain bid around 0.6540 by the press time.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD keeps the offered stance just above 1.1700

EUR/USD is coming under heavy selling pressure in what has been a rather grim start to the new trading week, with the pair now trading close to the 1.1700 support area as the US Dollar stages a solid rebound. The prevailing flight to safety mood continues to favour the Greenback, as investors react to the escalating conflict in the Middle East and trim risk exposure across the board.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold trims losses, back below $5,400

Gold now surrenders part of the earlier advance past the $5,400 mark per troy ounce at the beginning of the week. Indeed, the precious metal’s strong uptick remains fuelled by increasing geopolitical tensions in the Middle East amid the intense demand for safer assets.