One of the leading narratives in the foreign exchange markets is fear, amid concern that the virus causing panic in the Chinese city of Wuhan may have the potential to generate a global pandemic of yet unknown proportions. As headlines around the world focus on the prohibition of traveling for Wuhan residents, the Japanese Yen, the ultimate safe-haven currency, continues to gain ground against the Euro and the Dollar, rising more than 0.6% over the last three sessions (see attached chart).
The World Health Organisation will decide later today whether to declare a global health emergency. Should that be the case there will be more upside risk for refuge assets and further yen gains should be expected.
