0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Mixed
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • RT @Reuters: Trump issues executive order to address the 'threat' posed by TikTok, saying that beginning in 45 days, any transaction subjec…
  • RBA Statement on Monetary Policy - Sees no case for FX intervention. - Board continues to view negative interest rates as being extraordinary unlikely in Australia. - Yield target will remain in place until progress is being made in employment/inflation.
  • As expected, $USDMYR extended losses after confirming a breakout under a Descending Triangle What is the road ahead from here? Stay tuned for the next #ASEAN technical outlook later today! https://www.dailyfx.com/forex/technical/article/special_report/2020/07/30/US-Dollar-Drop-Continues---Now-What-USDSGD-USDMYR-USDPHP-USDIDR.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/OXRR08H7m6
  • RBA Statement on Monetary Policy - Pace of recovery to be slower than initial forecast; 2020 GDP to contract 6%. - Reiterates official cash rate (OCR) won't be raised until progress is made regarding employment/inflation. - Australian Dollar broadly in line with fundamentals.
  • IG Client Sentiment hints that the Dow Jones and crude oil prices may accelerate higher while USD/CAD resumes its dominant downtrend. What are key technical levels to watch for? Find out from @ddubrovskyFX here: https://t.co/qF1WlKvcxZ https://t.co/me1vC5d1gP
  • Heads Up:🇦🇺 RBA Ellis Speech due at 01:45 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-08-07
  • Heads Up:🇦🇺 RBA Statement on Monetary Policy due at 01:30 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-08-07
  • The New Zealand Dollar may extend its surge from yearly lows as it tentatively signals a cyclical upturn. NZD/USD, NZD/JPY rates poised for further gains. Get your market update from @DanielGMoss here: https://t.co/vrOuFkvWpX https://t.co/IlJvUDdpS6
  • Market snapshot: US equity futures pointing lower
  • Canadian Dollar Forecast: USD/CAD Mired by Trump Tariffs on Metals Read more via @DailyFX here - https://www.dailyfx.com/forex/market_alert/2020/08/06/canadian-dollar-forecast-usd-cad-mired-by-trump-tariffs-on-metals.html $USDCAD $CAD #FX #Forex #Trading https://t.co/p38XHV870F
Gold Loses Safe Haven Appeal as Trade War Boosts JPY, CHF, EUR

Gold Loses Safe Haven Appeal as Trade War Boosts JPY, CHF, EUR

2018-06-26 09:30:00
Martin Essex, MSTA, Analyst
Share:

Trade war news and analysis:

- The US China trade war continues to prompt demand for safe havens, with flows into the Japanese Yen, the Swiss Franc and the Euro.

- However, one traditional safe haven, Gold, is singularly failing to benefit.

Check out the IG Client Sentiment data to help you trade profitably.

Trade war continues to damage market confidence

The prospect of a US trade war with China, the European Union and others continues to prompt flows into assets seen as safe havens at times of market turmoil. That is again boosting two of the traditional havens: the Japanese Yen and the Swiss Franc. However, the Euro seems to be joining the haven ranks at the expense of Gold, which is seeing little demand.

The latest trade war developments are still worrying the markets, including proposed restrictions on foreign investment in US technology companies and a warning by Harley-Davidson that it would focus on shifting some US production to other countries.

As to be expected, that has boosted the Japanese Yen and the Swiss Franc, with USDJPY falling to its lowest level since June 11 and USDCHF to its weakest since June 14. Unusually though, the Euro is strengthening too, with the single currency increasingly seen as an alternative haven. In Asia Tuesday, EURUSD reached its highest level since its sharp fall on June 14, when European Central Bank President Mario Draghi signaled the end of ECB asset purchases in December.

EURUSD Price Chart, One Hour Timeframe (June 14-26, 2018)

Latest EURUSD price chart.

Chart by IG

That Euro strength has come despite US President Donald Trump threatening tariffs on EU car imports. Surprisingly, though, there has been no similar strengthening of the Gold price, with the precious metal currently trading at its weakest so far this year.

Gold Price Chart, Daily Timeframe (November 24, 2017 – June 26, 2018)

Latest gold price chart.

Chart by IG

For traders looking for safe assets therefore, Gold appears to be losing its shine, and may continue to do so even if the trade war intensifies further.

More to read on trade wars

China’s Position and Stakes in the Growing Trade War with the US

DAX Price Analysis - Trump’s Trade Wars Pummel Valuations

Resources to help you trade the forex markets

Whether you are a new or an experienced trader, at DailyFX we have many resources to help you: analytical and educational webinars hosted several times per day, trading guides to help you improve your trading performance, and one specifically for those who are new to forex. You can learn how to trade like an expert by reading our guide to the Traits of Successful Traders.

--- Written by Martin Essex, Analyst and Editor

Feel free to contact me via the comments section below, via email at martin.essex@ig.com or on Twitter @MartinSEssex

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.