Forex Traders Nervous as demand for Safe Havens Spikes
Tuesday’s trading saw the safe #haven demand rise after nevertheless another collapse in oil prices sent traders take flight away from commodity backed currencies. Also lower is the US Dollar Index as traders consider the possible outcome of this month’s Federal Reserve policy meeting considering the risky situation associated with global growth and the drop in equity markets in other parts of the world.
An #FX strategist in Japan noted that the #markets seem a bit nervous ahead of the #Federal Reserve policy meeting that is scheduled for some time today.
It was reported around 10:40 GMT in London, the USD/JPY was seen trading lower at 118.2600 Yen, down 0.04 percent; as the pair was earlier seen trading a session low at 117.76 Yen, down 0.45 percent.
The EUR/USD traded higher at $1.086, boosted by higher demand from carry-trade investors. The commodity-backed AUD/USD was seen trading lower at $0.6963.
Traders await BoJ and Fed Statements
Considering the global equity markets has been meshed in extreme volatility and a lot of traders are of the belief that #Federal Reserve Janet Yellen will tone down the latest speech and move towards a more dovish stance.
The Federal Reserve Bank is confident that it will hike rates at least four times in 2016, but investors and some analysts altogether, are of the belief that the #Fed may require going more cautiously going forward.
A lot of analysts out there believe that the #Fed Chair Janet Yellen will indicate a dovish future. On a slighter note, markets will also turn their attention away from the #Fed to the #BoJ’s policy meeting during the week. The Japanese yen is being constantly weaken by the BoJ, but this month’s outlook is high that they will keep on with their wait-and-see stance.