On Wednesday, the 28th of August 2019, the American currency was inched up, nonetheless, movements of US dollar on a 200-day moving average had been pointing towards a range bound formations. Although, Wednesday’s (August 28th) moves were smaller, but several analysts had been quoted saying at the market round off that the large buyers had still been in the bays to avoid being a casualty of Sino-US trade war, Aside from steep caution on currency trading market, US 30-yr yield curve inverted further on Wednesday (August 28th) which in effect stoked a nerve-wracking worries among the investors about a recessed global economy in a near-term outlook, since every US Treasury yield curve inversion followed a global scale recession for the last fifty years, however, there had been only one exception.
Over such tumultuous market backdrop, investors fled to safe-haven currencies likes of Japanese yen and commodities likes of gold, which had still been anchoring above its six-year-peak. On Wednesday’s (August 28th) market closure, the American dollar index measured against a basket of six major currencies on an average rose .25 per cent to 98.24, meanwhile, People’s Bank of China had devalued its currency further to 7.169 in the offshore market on Wednesday’s (august 28th), closing in towards its 11-year low figure of 7.186 breached on Monday (August 26th.
Although, Japanese Yen tumbled 0.32 per cent to 106.07 yen per dollar on Wednesday’s (August 28th) market closure, another safe haven gold managed to hold on to its gains anchoring near its six-years peak. Meanwhile, cautioning investors to sway away from long-buy position of riskier currencies, analysts of Credit Suisse wrote in a client note, “We continue to believe that any reversal in recent risk-off price action is likely to be an occasion to get out of long positions in risky assets and to add exposure to defensive trades from more attractive levels. We therefore caution against entering pro-risk trades for the time being”