The U.S however have turned their focus on the European Union once more with threats of imposing tariffs on $4 billion of additional EU goods. We have seen the U.S Dollar Index (DXY) react to this news on Monday and started to gain momentum.
The DXY is currently at a resistance point and might just weaken from here as the Non-Farm Payrolls (NFP) jobs numbers might deliver a surprise approach this Friday.
Brexit is still the focal point as growth in the U.K housing market starts to fade as Brexit concerns deepen. Weaker than expected Manufacturing PMI data has also reaffirmed growth concerns in the United Kingdom. The U.K Construction data released today has also disappointed and came in lower than expected.
The Japanese Yen is usually regarded as a safe haven currency has strengthen over the last couple of weeks as the U.S Dollar weekend. Yester days move on the currency pair can be attributed to participants seeking risk sensitive currencies as the U.S-China tariff truce kick off.
The South African Rand (ZAR) has gained strength against the U.S Dollar mainly due to Dollar weakness as the local economy is still in a state of disarray. We might see Emerging markets become the pick of the crop once more as markets risk appetite returns as the U.S-China trade truce brings some stability to international markets and global trade.
The USDMXN currency pair has seen increased volatility over the last couple of weeks as the U.S-Mexico border issue rages on and a freak heal storm cover parts of Mexico. Mexican Manufacturing data for June disappointed and slipped to an almost 2 year low as the U.S-China trade disputes take effect.
Some relief on trade might be expected as Emerging markets become attractive to investors once more over the medium term.
Take note that this currency pair is extremely volatile, and one can expect wide price swings and extreme volatility.
Disclaimer:
Any opinions, news, research, reports, analyses, prices, or other information contained within this research is provided by Barry Dumas, Market Analyst at GT247 (Pty) Ltd t/a GT247.com (“GT247.com”) as general market commentary, and does not constitute investment advice for the purposes of the Financial Advisory and Intermediary Services Act, 2002. GT247.com does not warrant the correctness, accuracy, timeliness, reliability or completeness of any information which we receive from third party data providers. You must rely solely upon your own judgment in all aspects of your trading decisions and all trades are made at your own risk. GT247.com and any of its employees will not accept any liability for any direct or indirect loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from use of or reliance on the market commentary. The content contained within is subject to change at any time without notice.