USD Advances on lack of Risk Appetite!



The greenback has risen this morning on its safe-haven status. Traders have decided to buy into the U.S. currency due to the instability in the financial markets as of now. The weak economic figures from Japan have also helped drive the dollar higher this Monday. The GBP/USD pair has fallen 0.15 percent to $1.6081. The AUD/USD has slipped 0.13 percent to $1.306. The USD has also made inroads into its other main peers.


The European single currency is much weaker this Monday due to the lack of demand for riskier currencies. The forecast of a fall in GDP in Spain and negative figures from Germany have played against the euro. In addition, the demand for risky currencies has slumped due to economic uncertainty. The EUR/USD pair has fallen this morning by 0.09 percent to $1.2930. It will be interesting to see if further losses lay ahead.


The yen has gained in the latest round of trading due to the higher demand for haven currencies. The yen is one of the main havens along with the greenback. The advances come despite the forecast of more economic stimulus for the Japanese economy in the coming trading days. The yen has actually fallen vs. the dollar. The USD/JPY pair is higher by 0.07% at 79.70 yen.

Crude Oil

Crude oil futures went a lot lower during the previous week of trading on the lack of risk appetite among traders. However, it did cut those losses slightly on both Thursday and Friday. The determination of Saudi Arabia to keep output at high levels has helped drive crude prices lower. This is as the price of crude oil has fallen this Monday morning by 44 cents to $85.85. There are diverse reasons for the latest losses. For example, the stronger dollar has pushed demand lower for oil. In addition, the economic uncertainty has led to lower demand for riskier assets. The determination of Saudi Arabia to keep output at high level has prevented crude from making sustained gains.  Oil may fall further in the next few hours.


Gold has advanced this morning by $2.95 to $1,714.85. This morning’s gains for gold come on the forecast that Japan will go ahead with further stimulus measures. Gold did cap heavy losses in the previous week of trading due to the lower demand for commodities and precious metals as a whole. The fact is traders have had a lack of appetite for gold in the previous three trading weeks due to global economic uncertainty.