Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Forex - Dollar higher on safe-haven buying

Published 08/27/2013, 09:20 PM
Updated 08/27/2013, 09:21 PM
EUR/USD
-
GBP/USD
-
USD/JPY
-
USD/CHF
-
AUD/USD
-
USD/CAD
-
NZD/USD
-
Investing.com - The U.S. dollar traded higher against most of its major rivals during Wednesday’s Asian session as traders sought out safe-haven currencies amid ongoing Middle East tensions.

In Asian trading Wednesday, EUR/USD fell 0.07% to 1.3385. The euro got a bit of a boost Tuesday after the Ifo German business climate index hit a 16-month high of 107.5 in August from 106.2 in July, which bolstered the single currency . Economists had expected the index to tick up to 107.0.

The Current Assessment Index rose to 112.0 in August from 110.1 in July, compared to expectations for an increase to 110.9. Germany is the euro zone’s largest economy.

GBP/USD fell 0.06% to 1.5538 while USD/JPY rose 0.19% to 97.23. Both sterling and the yen have been strengthening as traders look for alternatives to the greenback due to plunging currencies throughout the emerging world.

U.S. Defense Secretary Chuck Hagel said earlier the military is ready to take action against Syria if called upon by the White House.

The U.S. insists the Syrian military has used chemical weapons during its internal conflict as have the U.K. and others, a charge Damascus has denied. On Monday, U.S. Secretary of State John Kerry said the world would hold Syria accountable for using chemical weapons.

Adding to the tension, and perhaps to oil’s upside, is that Russia, the world’s largest oil producer, is urging the U.S. to take a softer approach to Syria. Russia has chided the Syrian regime recently but has stopped short threatening military action.

Speaking of oil, USD/CAD rose 0.13% to 1.0488 despite stronger oil prices, indicating traders’ appetites for riskier currencies remains limited. USD/CHF added 0.06% to 0.9183.

In U.S. economic news out Tuesday, single family home prices in 20 U.S. metropolitan areas rose 0.9% in June after a 1% May increase, according to the S&P/Case-Shiller Home Price Index. Las Vegas and San Francisco led the gains, but 13 of 20 cities saw gains in prices slow on a month-over-month basis.

The Conference Board’s index of consumer sentiment rose to 81.5 this month from 81 in July. Economists expected a reading of 79. The Conference Board’s measure of economic expectations for the next six months rose to 88.7 from 86.

AUD/USD slid 0.37% to 0.8951 while NZD/USD dropped 0.23% to 0.7781. The U.S. Dollar Index inched up 0.03% to 81.21.


Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.