Safe haven prices, news and analysis:
– The two major “safe haven” currencies, the Swiss Franc and the Japanese Yen, are continuing to ease.
– That’s despite ongoing worries about trade wars, oil prices and upcoming Turkish elections.
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Positive mood hurts JPY and CHF
Financial markets are continuing to ignore a difficult geo-political backdrop, with a “risk on” mood persisting, and that is hurting the traditional safe-haven currencies, the Swiss Franc and the Japanese Yen.
Potential trade wars between the US on one side and China, Canada and the Eurozone on the other remain a major concern as does the possibility that the OPEC oil producers and their allies such as Russia may fail to reach a deal to increase output to meet rising global demand.
Upcoming elections in Turkey are adding to the uncertainty, as are a meeting starting tomorrow of the EU’s Economic and Financial Affairs Council (Ecofin) and the tortuous progress of Brexit-related bills through the UK Parliament. Yet there has been little resulting demand for the Japanese Yen, which continues to lose ground against the US Dollar although there has been a small pickup in mid-morning European trading Thursday.
USDJPY Price Chart, Five-Minute Timeframe (June 20-21, 2018)
As for the Swiss Franc, USDCHF continues to trade broadly sideways after the expected decision by the Swiss National Bank this session to leave its ultra-loose monetary policy unchanged. The SNB Chairman Thomas Jordan said after the decision that it sets monetary policy independently but also considers international factors.
USDCHF Price Chart, Five-Minute Timeframe (June 20-21, 2018)
Resources to help you trade the forex markets
Whether you are a new or an experienced trader, at DailyFX we have many resources to help you: analytical and educational webinars hosted several times per day, trading guides to help you improve your trading performance, and one specifically for those who are new to forex. You can learn how to trade like an expert by reading our guide to the Traits of Successful Traders.
— Written by Martin Essex, Analyst and Editor
Feel free to contact me via the comments section below, via email at martin.essex@ig.com or on Twitter @MartinSEssex
