Forex Marketz Daily Forex News – Fully Markets Update
The Japanese yen (JPY) is trading close to a seven month high price point against the U.S. dollar during the Asian trade session on Tuesday. Traders are worried about regional unrest in Hong Kong as well as the implosion of the Argentinian currency and the Argentinian equity market. That came after that nation’s election results. This has soured risk sentient and boosted safe haven currencies.
The benchmark USD/JPY currency exchange rate was trading at 105.40 yen after hitting a high near 105.05 yen overnight. This is the dollar’s weakest price point since January 3.
The Japanese currency has been on solid footing all month thanks to souring trade relations between China and the United States and the possibility of another rate cut from the U.S. Federal Reserve.
The EUR/USD exchange rate was flat trading at $1.1215. The euro has made some gains after Italian bond yields pulled back from multi-week highs. This comes after the ratings agency, Fitch, left Italy’s credit rating as is.
The benchmark AUD/USD Forex market was trading a bit higher at $0.6760.
Traders watch Regional and Global Turbulence which Supports Safe Havens like the Yen
Regional traders are unnerved with the mounting unrest in Hong Kong. Yesterday, the international airport was closed to flights for several hours thanks to protests.
Globally, the surprise election results in Argentina shocked the currency and financial markets. Argentina President Mauricio Macri lost to the opposition in the presidential primaries. After the election the Argentinian peso closed at $52.15. This was a loss of nearly 15 percent against the dollar and was trading at an all-time low of $61.99.
Traders are worried that Argentina could return to interventionist policies. This could lead to a possible debt default.
