LONDON  - Market gauges of euro-dollar one-month implied volatility jumped on Friday to their highest in over a year at 6.6% as the intensifying coronavirus outbreak fuelled big currency moves and recession fears.

The Japanese yen, appeared to have regained its safe-haven status after last week's brief wobble, rising to a 3-1/2-week high of 108.79 versus the dollar.

The euro was last up 0.3% at $1.1028, a three-week high. Euro-dollar volatility, which fell to a record low just last month below 4%, surged to 6.75%, the highest since last July, having ended last week around 4.8%.

The greenback had strengthened recently but has since handed back those gains as money markets moved to price three 25 basis-point Fed cuts by mid-year, starting with one later this month. As recently as a week ago, markets had seen just a 9% chance of a cut FEDWATCH

 

(Reporting by Olga Cotaga; Editing by Sujata Rao) ((olga.cotaga@thomsonreuters.com;))