Dollar higher on safe-haven status as markets await Trump’s speech at the Economic Club of NY today
Kathryn Garvey " | November 12, 2019
The main market event today will be President Trump’s speech at the Economic Club of New York. He is expected to give an update on US-China trade talks as well as announce a decision on eurozone auto tariffs. Investors flocked to the dollar ahead of the speech.
Tuesday: Philly Fed Speech, President Trump at Economic Club of NY, UK Jobless Claims, German ZEW
Wednesday: US PPI, US Initial Jobless Claims
Thursday: US Retail Sales
November 12, 2019
EUR/USD 1.1018 GBP/USD 1.2847 USD/CAD 1.3225 AUD/USD 0.6845 USD/JPY 109.10 USD/CNH 7.0073 USD/ILS 3.5012 USD/MXN 19.1610 USD/CHF 0.9948 USD/INR 71.4675
USDThe dollar moved higher against G-10 and safe-haven currencies. Markets are awaiting President Trump’s comments at the Economic Club of New York today where they will listen for any reference to trade talks and tariff lifts or delays.GBP
Disappointing jobs data sent the pound lower as the Claimant Count Rate edged up to 3.4% versus 3.3% the previous month. Average earnings were also lower than expected at 3.6% versus 3.8% expected. Unemployment data paired with USD buying interest sent the pound lower.EUR
The euro slid lower today. German ZEW Economic Sentiment beat expectations coming in at -2.1 versus -13.2 expected. Key reasons for the beat include improved outlook on Brexit, expectation of delayed auto tariffs and optimism around a US-China trade deal. A beat in ZEW did little to redirect earlier losses as markets await President Trump’s speech today.CAD
The loonie was sent to 1-month lows this morning after a pickup in buying interest for the greenback. A pickup in crude oil prices did little to hinder the dollar’s positive momentum.ASIA/PACIFICMarkets await any references to US-China trade talks in President Trump’s speech today. Protests in Hong Kong began their 23rd week and showed no signs of slowing as a police spokesperson told reporters the city is pushed “to the brink of a total breakdown.”
Given the Japanese yen’s safe-haven status, the currency declined against the US dollar as the market moved to risk-on sentiment.