The #IronFX Midday Commentary by Marshall Gittler: The #dollar traded unchanged or lower against most of its #G10 peers during the #European morning Friday in the absence of major #economic events. It was lower against #NOK, #SEK, #AUD and GBP, in that order, while it was higher against #JPY. The greenback was virtually unchanged against #CAD, #CHF, #NZD and #EUR. On Friday, during the European morning non-economic events were the main market drivers. The crash of a #Malaysia #Airlines plane in eastern Ukraine on Thursday increased tensions between Russia and the West. Risk aversion among investors was further increased after the Israel military began ground attacks against Palestinian militants in the Gaza strip. Nevertheless, the impact of the events seems to have diminished as the safe-haven assets gave away most of their gains and returned to their yesterday’s pre-crash levels. USD/JPY fell almost 0.20% amid the news of the plane crash and weakened further in the following hours reaching one week low at 101.09. The fading of the events however reversed the pair’s loses and it advanced to the 101.40 level at the time of writing. #Gold followed a similar pattern to yen as a safe-haven asset. The precious metal jumped approximately +1.70% following the news of the Malaysian jet crash but gave away some of its gains as soon as the events’ uncertainty weakened. The trend of the #commodity confirmed my view that some of the “risk off” trades that were put on yesterday were likely to be reversed.
Posted on: Fri, 18 Jul 2014 10:44:58 +0000
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