Forex Marketz Daily Forex News – Fully Markets Update
The U.S. dollar was under pressure this morning during Asian trade hours. This comes after retail data was weaker than expected. Safe haven currencies like the Swiss franc and the Japanese yen benefited as tensions rose between the United States and Saudi Arabia and an impasse with Brexit over the United Kingdom’s plan to leave the European Union.
The dollar is often considered a safe haven currency during time of market and geopolitical turbulence. There, however, was a broad risk-off sentiment, as traders digested data that U.S. consumers were not spending. This paused Treasury rates which took strength from the dollar.
The GBP/USD market was trading at 1.3155. Traders are waiting on more clarity regarding the post-Brexit era regarding the U.K.’s border with Ireland.
The EUR/USD market was up a bit trading at 1.1581. The euro is well above Tuesday’s seven week low at 1.1429.
The USD/JPY market was trading at 111.84. This is near a one month high set on Monday at 111.61. The USD/CHF market was flat this morning trading at 09868. It rise 0.45 percent overnight during the North American trade hours.
Safe Haven Currencies Gain on Political Tensions as the Dollar Pauses
The Swiss franc and Japanese yen drew capitol as tensions between Western powers and Saudi Arabia grew. The kingdom is under pressure since a well known Saudi journalist Jamal Khashoggi, who was a critic of Saudi Arabia as well a U.S. resident, vanished on October 2. He was last seen entering the Saudi consulate in Istanbul.
Looking at economic data out of the United States, retail sales grew slower than expected at 0.1 percent last month. This follows the last inflation report that showed a modest growth with U.S. consumer prices.
