The yen, considered a safe haven, is triggered by fears about the virus

The Japanese yen is in great demand on Monday, as traders turn to the safe haven of the currency due to concerns about the spread of the virus similar to that of pneumonia from China.

At 9:20 a.m. (CET), the USD / JPY drops 0.2% to the 109.08 level, having previously fallen to 108.73, its lowest level since January. The dollar index futures , which follows the evolution of this currency with respect to a basket of six other major currencies, generally remains unchanged at 97.68.

In China, about 2,000 people have been infected and 56 have died from the disease, according to the authorities of the nation this Sunday, although reports claim that the death toll is already 80.

“According to recent clinical information, the ability of the virus to spread seems to be somewhat stronger,” said Minister of the National Health Commission of China, Ma Xiaowei, at a press conference this Sunday, adding that it is contagious. in its incubation period, that is, before symptoms appear, which makes it harder to contain.

That said, ING (AS: INGA ) analysts do not believe that USD / JPY losses are going to be extreme, “as Chinese markets will remain closed until Friday for the Lunar New Year, perhaps limiting price declines. of assets. ”

Looking ahead, “we doubt the Fed has too much impact on the USD / JPY this week,” analysts have said, adding that Japan’s data this week includes updates on the Tokyo CPI, employment, production Industrial and retail sales.

“At its last meeting, the Bank of Japan discreetly improved growth and lowered its inflation forecasts to keep its complicated monetary policy unchanged. It is hard to imagine that the monetary policy of the Bank of Japan has much impact on the yen this year,” he adds ING (AS: INGA ).

The pound, the euro and the dollar barely register variations as traders await not only the meeting of the Federal Reserve on Wednesday, but also that of the Bank of England on Thursday.

At 9:25 a.m. (CET), the EUR / USD rises 0.1% to the level of 1.1031 and the GBP / USD remains unchanged at 1.3075.