Safe havens are back with a vengeance
The U.S. dollar is rising, the yen is rising, the Swiss franc is rising and international stock markets are falling as is the pound sterling. In short, safe havens have had the wind at their backs since yesterday morning. According to many analysts, Brexit-related fears appear to have resurfaced after a lull. Comments by Bank of England Governor Mark Carney may have revived investors’ concerns, when he warned markets that risks to financial stability had “begun to crystallize.”
In the wake of Carney’s statement, U.S. bond yields plunged to an all-time low. Although the loonie ended the day down against the USD, it proved rather resilient. Despite these developments, this is the type of environment when the currency market can become particularly volatile, making it a good time to target levels and place orders!
Today, we’ll be keeping an eye on Trade Balance data on both sides of the 49th parallel and the release of the minutes of the most recent FOMC meeting. Positive comments could give a major boost to the USD.
