State of the market : investors buy safe haven currencies
With the opening of trading on Friday, the demand for safe-haven currencies: yen, franc and gold has increased sharply in the market. The growth of these assets was traced since the opening of the European session on Thursday. But at the opening of Friday’s trading, this movement acquired the characteristics of a stampede from risk. Despite the restrained dynamics of stock indices, the main driver for the growth of pessimism was the information that China is ready to limit selling rare-earth minerals. Rare-earth minerals are one of the most significant US imports, without which the normal functioning of the high-tech sector of the USA is impossible.
Also, the driver to the growth of risks was the statement by the US President D. Trump that he would impose a 5% duty on goods imported from Mexico until the issue of illegal migrants coming from Mexico is resolved.
As a result of negative comments from China on the market, optimism has noticeably decreased, aided by weak data on China’s business activity. Against the background of aggravating pessimism, the dollar index was under the pressure. He retreated from the highs and returned to the side channel from 98.20 to 98.00. At the same time, maintaining the upward trend of the current week.
Read also: “Alert in the MT4 trading terminal and its use”
Hanzenko Anton
Earn with the help of the trade service on the news Erste News!
Topical articles of the trader’s blog:
- Should we expect the currency intervention from the Bank of Japan?
- Political risks in the UK increase the chances of Brexit without a deal
- Cryptocurrencies as new safe haven assets
Current Investment ideas: