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By xemarketanalysis December 28, 2018 2:00 pm
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    XE Market Analysis: Volatile Stock Markets Send Investors Seeking Safe Havens

    OVERVIEW

    • International stock markets took investors for a roller coaster ride this week, leaving analysts scratching their heads
    • USD weaker against safe-haven currencies and Euro as US President continues to rail against Fed
    • Sterling moving sideways as UK Parliament prepares for Brexit deal vote on January 14

    HIGHLIGHT

    The US Stock Market ended on a high note yesterday, up by around 5% for the Dow, the S&P 500 and the NASDAQ. Stocks today are flipping between small gains and losses, as investors hope for a return to strong December numbers. Up until yesterday, stock exchanges had seen its worst declines since the Great Depression. Many investors sought flocked to safe-haven currencies like the Japanese Yen, which is up by 0.66% on the USD, and the Swiss Franc, up by 0.82% on the Greenback. The Dollar Index, which gauges the USD against six peer currencies, fell 0.22% to 96.265.

    US DOLLAR

    Stock market turmoil, combined with a partial US Government shutdown and attacks on the Fed's interest rate increases are weighing down the US Dollar. Questionable comments and tweets by the US President and phone calls by Treasury Secretary Steve Mnuchin to CEOs of the biggest US banks stirred up investor concerns. 

    BRITISH POUND

    GBP has been in a holding pattern this holiday period, following a sustained period of Brexit-related declines. UK Prime Minister Theresa May is expected to get back to trying to convince EU leaders to sweeten the separation deal, but analysts aren't optimistic. January 21st marks the legislated deadline of getting a Brexit deal done, a week after the scheduled parliamentary vote. Many hold on to hopes of another referendum should the deal be voted down. 

    EURO

    The EUR USD pair retreated from its highs earlier in this week and settled under 1.1450. Signs of flagging economic growth momentum and Italy's asset rally seems to be holding EUR-USD in a sideways pattern over the holiday season. 

    CANADIAN DOLLAR

    USD-CAD continues to be influenced by whether the Federal Reserve Bank will continue its trend of raising interest rates. Prices for oil and other industrial commodities continue to tumble, and this trend is expected to continue into 2019. USD CAD closed at 1.364 after hitting a low of 1.359. 

    AUSTRALIAN DOLLAR

    AUD-USD is up by 0.1707%, having recovered versus the greenback, buying at $0.7042, compared with $0.7030 late yesterday.

    FEATURED CURRENCY

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