Views Article – Sharenet Wealth

Europe, Forex

Yen, Swiss franc rise on trade worries, downbeat global data

* Yen strengthens beyond 106 as investors look for safety * Swiss franc rises on safe-haven bids as well * Italian political uncertainty weighs on risk appetite * Soft global data boosts risk aversion * Dollar headed for biggest weekly decline since June * Graphic: World FX rates in 2019 (New throughout, updates prices, market activity, comments; new byline, changes dateline, previous LONDON) By Gertrude Chavez-Dreyfuss NEW YORK, Aug 9 (Reuters) – The yen and Swiss franc gained on Friday, as investors sought the safe-haven currencies due to nagging U.S.-China trade war jitters, renewed political uncertainty in Italy and weak economic data around the world. Deep liquidity and current account surpluses in Japan and Switzerland attract safe-haven flows to those currencies during times of geopolitical and economic stress. “What wouldn’t make safe havens look attractive this week,” said John Doyle, vice president for dealing and trading at Tempus, Inc. in Washington. “The equity board is awash in red. The trade tensions are a big thing and if you look around the world, all the data were negative, or at least concerning. So of course, we’re going to see an uptick in the Swissie (franc) and the yen,” he added. Fears of Washington’s trade war with Beijing escalated after Bloomberg reported the United States has again held off on granting licenses to China’s telecom equipment maker Huawei. U.S. data showed underlying producer prices fell 0.1% in July, suggesting inflation remained muted. Canada’s economy lost 24,200 jobs last month. In Britain, the economy shrank for the first time since 2012 in the second quarter and sterling slid to a 31-month low against the dollar. There was a sell-off in Italiana bonds as Italy added to the global tension. The ruling League party filed a no-confidence motion against the prime minister, a move the party’s populist chief Matteo Salvani hopes will trigger early elections and install him as the new leader. The dollar weakened against a basket of currencies, pressured as U.S. President Donald Trump repeated his call for a weaker currency to help American manufacturers. Trump told reporters at the White House he believes the Federal Reserve needs to lower interest rates by a full percentage point. In late morning trading, the dollar fell 0.4% against a surging yen to 105.61 yen, near the seven-month low of 105.5 hit earlier this week. The yen was on course for its second weekly gain versus the U.S. dollar and its third weekly gain versus the Australian and New Zealand dollars. The Swiss franc rose versus the dollar and euro. The dollar was last down 0.2% at 0.9732 franc, while the euro slipped 0.1% at 1.0893 francs. The euro rose against the dollar to $1.1198., showing little reaction after Salvini called for early elections. The dollar index dipped 0.1% slipped to 97.545 and remained on course for its biggest weekly decline since June 21. Sterling fell 0.5% to $1.2075 against the dollar and 0.7% versus the euro, which rose to 92.74 pence, after the UK’s weak data. ======================================================== Currency bid prices at 10:45 AM (1445 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1198 $1.1178 +0.18% -2.36% +1.1208 +1.1181 Dollar/Yen JPY= 105.5800 106.0600 -0.45% -4.24% +106.1100 +105.5800 Euro/Yen EURJPY= 118.26 118.58 -0.27% -6.31% +118.7200 +118.2500 Dollar/Swiss CHF= 0.9730 0.9746 -0.16% -0.86% +0.9754 +0.9719 Sterling/Dollar GBP= 1.2078 1.2131 -0.44% -5.31% +1.2153 +1.2057 Dollar/Canadian CAD= 1.3237 1.3224 +0.10% -2.93% +1.3274 +1.3206 Australian/Doll AUD= 0.6806 0.6800 +0.09% -3.45% +0.6818 +0.6780 ar Euro/Swiss EURCHF= 1.0898 1.0897 +0.01% -3.16% +1.0913 +1.0889 Euro/Sterling EURGBP= 0.9269 0.9213 +0.61% +3.17% +0.9289 +0.9208 NZ NZD= 0.6488 0.6478 +0.15% -3.41% +0.6498 +0.6463 Dollar/Dollar Dollar/Norway NOK= 8.8759 8.9261 -0.56% +2.75% +8.9324 +8.8504 Euro/Norway EURNOK= 9.9412 9.9797 -0.39% +0.36% +9.9955 +9.9101 Dollar/Sweden SEK= 9.5426 9.5982 -0.40% +6.46% +9.6066 +9.5257 Euro/Sweden EURSEK= 10.6891 10.7321 -0.40% +4.14% +10.7476 +10.6648 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Tommy Wilkes in London; Editing by David Gregorio)

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