Weaker Dollar Boosts Safe havens

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1. Weaker Dollar Boosts Safe havens

The dollar hovered near 11-week low on Fed rate cut bets, with the DXY tumbling to 96.62 this morning. A weaker dollar and the risk off mood caused investors to turn to safe haven currencies on Wednesday. The Japanese yen saw some gains. Meanwhile, the EUR is extending its climb moderately awaiting more input from a Mario Draghi speech this morning. The sterling is also gaining some support from USD weakness but remains rather muted.*

 

2. New Clashes on the Trade War Front

Chinese countermeasures against the US seem to be in the making as per the Global Times editor which tells us this trade war is anything but even close to a deal. Yesterday, U.S. President Donald Trump defended the use of tariffs as part of his trade strategy, while China vowed a tough response if Washington insists on escalating trade tensions. It is not even clear if Trump will meet Xi on the G20 summit, despite Trump threatening to up tariffs on China’s imports if Xi does not attend.**

 

3. Oil Prices Tumble

Oil prices dropped almost 2% on Wednesday, despite a weaker dollar as they were weighed down by a diminishing oil demand outlook and a rise in U.S. crude inventories. Specifically, the U.S. Energy Information Administration cut its forecasts for 2019 world oil demand growth in a monthly report released on Tuesday.***

 

4. Gold Recovers, BTC Nears $8K

Spot gold saw some considerable gains on the back of a weaker greenback with the noble metal climbing above $1335 this morning. Renewed concerns over U.S.-China trade war, also increased the appeal of safe-haven bullion. Elsewhere, bitcoin remained below the 8k handle but is currently very close to breaking the key resistance level suggesting another attempt in due time.****

You can find and trade CFDs on all of the above mentioned assets on BDSwiss Forex/CFD platforms.

 

Sources:
*CNBC Jun 12, 2019 2:48 AM ET
**Reuters Jun 12, 2019 3:53 AM ET
***FXStreet Jun 12, 2019 03:07 AM ET
****Bloomberg Jun 12, 2019 06:13 AM ET

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