Dollar Gathers Safety as Forex Markets Become Worried

Jacob Friedman

dollar notes held infront of graphThe US dollar gathered together the benefits of lower risk sentiment today after it appeared that trade tensions were back on the agenda.

It is believed that US trade leaders will this week ask China for concessions on its policy towards American intellectual property.

If this is agreed, it could pave the way for a trade deal to be agreed. However, this still appears to be far from certain.

As a result of the debates, safe haven currencies were back in fashion as trading opened on Monday morning.

The US dollar index, which measures how the currency is performing in relation to six other major currencies around the world, went up a little to 96.64.

While the Swiss franc saw tiny rises to 0.9995 too.

The Japanese yen, which is often also described as being relatively safe, was little changed – although this was down in large part to the closure of the markets in Japan for the Foundation Day holiday.

There’s a lot on the economic calendar for traders to look out for this week.

Today (Monday) sees an unusual metric released from New Zealand at 9.45pm GMT. The rate of electronic card retail sales for the month of January will be released month on month, this was last recorded at -2.3%.

Tomorrow, Australian home loans data for December will be out at 12.30am GMT. This is expected to show a change from -0.9% to -2%.

Japan’s tertiary industry index for the month of January is expected at 4.30am GMT. Month on month, this is expected to change from -0.3% to +0.4%.

Bank of England governor Mark Carney will speak at 1pm GMT. At 5.45pm GMT, the US Federal Reserve Chair Jerome Powell will also speak.

Towards the end of the day, there’ll be two further American central banker speeches. Esther L. George, who is President and CEO of the Federal Reserve Bank of Kansas City, will speak at 10.30pm GMT. While Loretta J. Mester, who is President and CEO of the Federal Reserve Bank of Cleveland, will speak at 11.30pm GMT.

At 1am GMT on Wednesday morning, the Reserve Bank of New Zealand will make its interest rate announcement. It is widely expected that the bank will keep rates where they currently are at 1.75%.

British core consumer price index data for the month of January is expected at 9.30am GMT. This is due to show a slight drop year on year from 2.1% to 2%.

American consumer price index data for the month of January is also expected that day. Excluding food and energy, the figure is forecast to hold steady at 0.2% when it is announced at 1.30pm GMT.

The New Zealand food price index for the month of January will be out at 9.45pm GMT. Month on month, this was last recorded at -0.2%.

Preliminary Japanese gross domestic product data for the fourth quarter of last year is expected at 11.50pm GMT. Quarter on quarter, this is expected to shift from -0.6% to +0.4%.

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Jacob Friedman
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