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Safe Havens Turn Attractive as Dollar Loses Sheen Over Trade War and Rate Cut Sentiments

On Monday, St. Louis Fed President James Bullard stated that a rate cut could happen soon because of the ongoing trade war’s impact on the US economy as well as because of weakening inflation. Data released on Monday lent support to Bullard’s statements as manufacturing activity fell to its weakest level in over two years in May 2019.

As a result, the US dollar index DXY fell further and is now trading at around 97.17. The dollar weakened against other major currencies in anticipation of a rate cut and because investors are moving towards safe havens like GOLD and the Japanese yen.

USD/JPY touched 107.88 on Monday, marking the strongest level for the Japanese yen since January, although it has given back some of its gains since then. At the time of writing, this forex pair is trading at around 108.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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