On Friday, the 9th of August 2019, a majority of safe-haven currencies and commodities gathered pace following US President Donald Trump’s latest downbeat comments over a decipherable China deal, which in effect triggered a flight-to-safety response of the investors across the globe.
Aside from Trump’s Friday’s (August 9th) comment that he was not prepared to ink a deal with Beijing, political uncertainty in Italy’s coalition government alongside a basket of downbeat economic data around the world had rattled both currency and commodity markets, prompting FX markets to seek safety on safe-haven currencies such as Japanese Yen and Swiss Franc.
Meanwhile, addressing to a gruesome impact of a year-long Sino-US trade war over financial markets around the globe, a senior FX strategist at Rabobank in London, Jane Foley said, “The recent escalation in trade wars between the U.S.
and China suggests there is potential for robust demand for safe-haven assets going forward and this implies ample scope for a firmer yen. But the strength of the yen will not be welcomed by the BoJ (Bank of Japan), which continues to struggle to push Japanese CPI inflation towards its 2% goal.
” Quoting statistics, on Friday’s (August 9th) market wrap-up, Japanese Yen added 0.20 percent to 105.66 Yen/ US dollar, remarking three straight day of gains against its American counterpart and posting its best closing figure since March 27th, 2018.
Meanwhile, another safe-haven currency, Swiss Franc, demands of which usually rises during the times of geo-political tensions, closed Friday’s (August 9th) market with a gain of 0.12 percent to settle down at $0.9723.