Forex Today: Safe-havens strongly bid as US bombs Syria, UK IP, NFP in focus
|Volatility was back in Asia along with risk-aversion after big news of the US attacking the Syrian airfield broke on the wires. Yen emerged the strongest across the fx space, while gold rallied almost 1% to the highest levels since Feb 26 amid increased flight to safety, as markets dumped risky assets in search for safety bets.
As a result, risk currencies such as the Antipodeans and GBP came under heavy selling pressure, with the Aussie losing the most. Also, the Asian equities and treasury yields felt the heat of the US military strike on Syria’s target. The US launched 60 missiles in response to Syria’s chemical attack, with the US President Trump noting that the strike on Syria was in the 'vital national security interest' of the US.
Amidst the news of the US attack, the focus seen on the Trump-Xi meeting got somewhat diverted, as markets witnessed a sudden turnaround in risk sentiment. Risk-on prevailed in the overnight trades amid a recovery in Wall Street stocks and treasury yields, as markets remained expectant of a positive outcome from the much-awaited Trump-Xi meeting.
According to Fox news report released earlier on the day, President Trump at a dinner with President Xi said, “I can see that long-term, we are going to have a very, very great relationship and I look very much forward to it”.
Looking ahead, we have an action-packed economic calendar for today, kicking-off with the German industrial production and trade data, followed by a slew of releases from the UK docket, including the Halifax HPI, industrial production and BOE Carney’s speech.
Meanwhile, the employment reports from both the North American economies are expected to hog the limelight, particularly the US payrolls data. Besides, the Canadian Ivey PMI and FOMC member Dudley’s speech will be also closely eyed.
Main Headlines in Asia:
Trump sees great relationship with China in the long-run
Japan’s Aso - US-Japan dialogue will also include Energy & Infrastructure
US military strikes Syrian airfield
US launches dozens of cruise missiles at airbase in Syria
US President Trump: Strike on Syria in the 'vital national security interest' of the US
Syrian Military Source: US missile strike on Syrian air base "led to losses" - State TV
Pentagon: US informed Russia ahead of missile strike on Syria's Shayrat airfield
US Sec of State Tillerson: "We sought no approval from Moscow”
Key Focus Ahead:
US Non-Farm Payroll data
High expectations of a good nonfarm payrolls report - Nomura
How are you going to play nonfarms payrolls? - Nomura
5 Things to watch in the March NFP report - WSJ
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.