Forex traders are still looking for a safe haven today, and the US dollar is providing that feeling of confidence. With upheaval in the stock markets and uncertainty over North Korea and the Middle East, it’s no surprise that the dollar is gaining ground today.
Risk appetite is low right now as investors and traders move away from the assets likely to be impacted by recent developments in Asia. Disappointing news out of China has been wreaking havoc in the markets since the beginning of the week, and now North Korea claims it has successfully tested a hydrogen bomb. And that’s not even looking at the Middle East.
With all of this, expectations are that the US dollar will remain a strong safe haven. Greenback is on the rise as a result.
Forex traders are also looking forward to the release of the latest FOMC minutes later today. Last month’s interest rate hike was expected, and Forex traders and others will want to read the minutes to get a sense of when subsequent rate hikes might be seen.
At 15:00 GMT EUR/USD is down to 1.0741 from the open at 1.0750. GBP/USD is down to 1.4631 from the open at 1.4670. USD/JPY is down to 118.5990 from the open at 119.0300.
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