Forex Today: Risk aversion likely to keep leading the way
|Here is what you need to know on Monday, January 6th:
- US President Trump took over twitter to respond to Iran’s revenge menace, threatening to respond “fast and hard” to any menace.
- UK PM Johnson and EU Commission President, Ursula Von der Leyen, to meet this week in the UK. Speculation is that they will start discussing the post-Brexit relationship between the two economies.
- During the weekend, the Chinese Central Bank stated that it will keep its monetary policy prudent, flexible, and appropriate, and continue to deepen financial reforms, repeating its well-known stance.
- The USD closed the week with modest gains against high-yielding rivals, as a dismal ISM Manufacturing PMI, which fell to its lowest in over a decade, interrupted the rally triggered by risk-aversion.
- Safe-haven assets soared with gold at a 6-year high and the USD/JPY hitting a 2-month low.
- Crude oil prices jumped with US-Iran tensions, trading at their highest since April 2019.
- Wall Street closed in the red, with worldwide equities weighed by the negative market mood.
- Cryptocurrencies rallied on Friday, acting once again as safe-haven assets. Throughout the weekend, cryptos consolidated gains.
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