Greenback starts the week on the front foot, oil surges…
The US dollar started the week in fine form, gaining against the majority of its peers. The most probable reason was risk-off flows due to the massive surge in oil prices following an attack on Saudi Arabian units.
The buck made easy work of pushing its way toward $1.24 and $1.10, against the pound and euro, respectively. However, support was held at both these levels across the day as oil jumped higher to the tune of 13%. Throughout the day, rumours of who performed the attack mixed the plots of potential responses, kept risk-off flows present. This in turn lent support to both the Swiss franc and Japanese yen.
Boris’ trip to Luxembourg wasn’t as successful as many had hoped. The usual rhetoric came out from both sides. The EU confirmed no alternative proposals had been made regarding the Irish backstop while Johnson continued to state that he’s ready to make a deal. The main talking point was Johnson’s choice to skip the press conference. A wise choice judging by the unfair presence of protesters in the crowds.
Yesterday’s economic calendar was noticeably light, sadly today’s is not too different. The morning session sees German ZEW economic sentiment indicators while the afternoon sees US manufacturing and industrial production
Written by Viv Savani. 8:34am, September 17th 2019
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8:23am, January 28th 2020
Risk-off flows dominate as financial markets fear the wider impacts of Coronavirus…