Safe-haven flows surge on rising coronavirus cases!

July 10, 2020 12:30

Coronavirus safe haven assets

More than 60,000 new coronavirus infections were reported in the United States on Thursday, setting a one-day record and causing a rush into safe-haven flows in the Asia session. Reports that Hong Kong is to suspend all schools due to a spike in coronavirus cases has also weighed on risk sentiment.

Much of the recent optimism in global stock markets has been due to the record rise in the China A50 stock market index. However, the index snapped an eight-day winning streak overnight causing investors to dump global stocks in favour of safe-have flows like the Swiss Franc and the Japanese Yen.

Commodity currencies against the Japanese were hit particularly hard as risk-off flows prevailed. Canadian dollar against the Japanese Yen (CAD/JPY) is likely to be in focus with the Bank of Canada rate statement the next high-risk news event on the 15 July.

Below is the long-term, monthly price chart of Novavax Inc's share price, available via Admiral Markets on the MetaTrader 5 trading platform.

CAD/JPY monthly chart

Source: Admiral Markets MetaTrader 5, CADJPY, Monthly - Data range: from 26 December 2019 to 8 July 2020. Please note: Past performance is not a reliable indicator of future results. CADJPY 5 year performance: 2019 = +4.07%, 2018 = -10.33%, 2017 = +2.95%, 2016 = +0.17%, 2015 = -15.80%, 2014 = +4.23%).

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