Yen With Support From Trade Tensions Drive The Market To Safe Havens
June 3, 2019 | Monday
Yen gaining more than it's fourth-month high facing the United States Dollar during the Monday trade. That with the Swiss franc gaining while the United States President Donald Trump and his administrations still at hard stance against the trade broadening surpassing China while stoking investors want to be on sale on the safe-haven assets.
As traders issue the remaining front-and-center, the investors wanted a riskier and dampened by fears within the from the slowing global growth. The slowdown helped led a demand on government debt, which triggers a sell-off on equity.
Meanwhile, the safe-haven assets are supported even if the private survey on the manufacturing sector in China points modest expansion within the factory activity while export orders come back.
During the recent development, the United States and Mexican officials are getting ready for a trade talk upon Trump's announcement a plan to impose a tariff on Mexican import to America goods this month.
According to Chris Weston, Melbourne-based head of research at foreign exchange brokerage Pepperstone, Trump's announcement on Mexico goods tariffs took everyone by surprise. He added that Mexico is a big trade part for the U.S. imported goods.
Elsewhere, the Swiss franc went up to 0.3 percent facing the U.S. dollar to a 0.9975. In addition, yen gains up to 0.15 percent to a 108.10, its highest since mid-January.
Late last week, the Japanese currency booked on its sharpest incline in more than two years. It went up more than 1.2 percent during Friday's trade session.
Yen is among the safe-haven asset during geopolitical and financial turbulence within the market as Japan is the biggest creditor nation around the globe.
Furthermore, the U.S. and Mexican officials prepare on Sunday for their upcoming talks that aim to avert Trump's announcement of his plan to impose 5 percent tariffs on the Mexican goods on June 10.
Loving what you've read now and want to have more news similar to this? Send your contact details here. Need to advertise your business? Connect with us now, and we'll be glad to help.