Halfway through the week, the Euro to U.S. Dollar exchange rate is being traded over the 1.12 mark following the release of German retail sale figures. The pair was also supported by the Chinese Caixin PMI and U.S. Consumer Confidence which outdid any forecasts. 

Traders are now awaiting the publishing of the Non-Farm Payrolls and looking to see how coronavirus fears will impact the two currencies. 

The U.S. director of the National Institute of Allergy and Infectious Diseases said that the nation could hit 100,000 new coronavirus cases per day on Wednesday. 

Coronavirus concerns worldwide are affecting investor sentiment, which pushed the greenback towards haven. preliminary estimates are hinting that Eurozone CPI will increase 0.3% YoY, but the shared currency did not manage to take advantage. 

The Cable dropped below the 1.2400 handle due to questions about British Prime Minister Boris Johnson’s stimulus plan. Furthermore, the Sterling is also being weighed on by Brexit concerns and the latest news regarding Leicester’s lockdown. 

Within 24 hours, the GBP/USD pair rose in value by almost 150 pips after falling close to one of the lowest monthly levels. 

The last GDP report highlighted that the UK’s economy contracted by 2.2% during the first quarter of 2020, more than what was initially predicted. 

In other news, the Australian Dollar to American Dollar exchange rate dropped below 0.6900 due to the risk-off sentiment increasing on the U.S.-China headlines.