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)
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— Written by Martin Essex, Analyst and Editor
Feel free to contact me via the comments section below, via email at firstname.lastname@example.org or on Twitter @MartinSEssex