Geopolitical Risks Support the Demand for Safe Currencies

The tension on the Korean peninsula continues to increase. North Korea carried out several missile tests, the range of actions covers the territory of the United States. The US Department of Defense issued an official warning to North Korea. These events caused a significant demand for the Swiss franc and the Japanese yen, which belong to the group of safe currencies. During yesterday's trading, drop in the USD/CHF quotes exceeded 1%.

Reserve Bank of New Zealand, as expected, kept the interest rate at the previous level of 1.75%. The regulator intends to maintain a neutral position.

Prices for "black gold" show a positive trend. The US Energy Information Administration reported that crude oil reserves in the country decreased by 6.451 million barrels. At the moment, futures for WTI crude oil are traded near $49.75 per barrel.

Market Indicators

The main US stock indexes are near historical highs. SPY (SPDR S&P 500 ETF) closed at 247.25 USD.

The 10-year US government bonds yield is recovering after a sharp fall during yesterday's trading. At the moment the indicator is at the level of 2.25%.

The dollar index (#DX) finished the trading session in the negative zone (-0.12%).

News background on the 2017.08.10:

  • – output in the manufacturing industry in the UK – 11:30 (GMT+3:00);
  • – producer price index in the US – 15:30 (GMT+3:00);
  • – speech of the FOMC member Dudley – 17:00 (GMT+ 3:00).

by JustMarkets, 2017.08.10

We advise you to get acquainted with the daily forecasts for the major currency pairs.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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