Yen boosted by safe haven flows amid risk aversion

July 6, 2016

Article by ForexTime

Risk aversion in the markets due to Brexit concerns led to a strengthening of the safe-haven yen while Sterling tumbled to a new 31-year low against the US dollar.

USDJPY fell to a 2-week low of 101.46 yen on Tuesday due to the stronger yen but the greenback also came under pressure due to disappointing US data.

A report showed that new orders for US factory goods fell 1.0 percent in May on weak demand for transportation and defense capital goods. New orders had previously risen two straight months.

The British pound was one of the worst performing major currencies and tumbled to a new 31-year low of$1.3050 hit on Tuesday.

Sterling weakened to a two-and-a-half-year low against the euro , pushing the single European currency to 85.19 pence.


Free Reports:

Get Our Free Metatrader 4 Indicators - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter





Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.





The pound fell despite Bank of England Governor Mark Carley’s attempt to calm market fears from Brexit fallout when he spoke on Tuesday following the BOE’s release of the bi-annual financial stability report.

Risk aversion pressured oil prices which slipped as much as 4 percent on Tuesday while US treasuries soared.

 


Article by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com