Safe Havens Turn Attractive as Dollar Loses Sheen Over Trade War and Rate Cut Sentiments - Forex News by FX Leaders

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

Posted Tuesday, June 4, 2019 by
Arslan Butt • 1 min read

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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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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