US Dollar Soars vs. Main Peers on Safe Haven Status!

By ForexMinute
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US dollar gains versus most peers

During the Asian trading session on Friday, the US dollar gained versus most of its currency counterparts. This was on the back of growth contracting in China, which boosted demand for safe haven currencies. The EUR/USD trading rate was 1.2295, while the USD/JPY trading rate was 78.58 yen.

At 12:18 PM in Sydney, the Australian dollar was trading lower at USD 1.0550. The Norwegian krone had a big fall of 0.9% against the US dollar to 5.9304. Brazil’s real was one currency which appreciated against the greenback by 0.1%, and traded at 2.0132. Experts feel that it is good to see other economies generally picking up. These economies include Australia, Brazil and Norway. This will also deflect some attention from the European debt crisis, which has badly affected the global economy.


Euro trades weaker against currency counterparts

The European debt crisis and speculation about weak economic data in Europe made the euro weaker against its peers. Traders are currently seeing no upside in the euro as of Friday. GDP projections amongst economists for the Eurozone remain grim, and the euro may further weaken when the actual data supporting this view is released on August 14.

The euro is lower in value by 0.1% against the US dollar, trading at $1.2295. The EUR/JPY trading rate was 96.62 yen. It is worth noting that during this current week, the euro has fallen by 0.6% against the dollar and 0.7% against the yen.


Yen gains versus euro but declines against US dollar

During the Asian trading session on Friday, the yen gained versus the euro but declined against the US dollar. The euro was trading at 96.62 yen, while the US dollar gained and traded at 78.58 yen, more than the figure of 78.57 on Thursday.

There has also been disappointing economic news from Japan. Experts speculate that exports have slowed down in the wake of a generally high value yen. Export heavy Japanese companies have already cut their profit forecasts. Analysts feel that GDP may have expanded by 2.3% in the second quarter of 2012. The rate of GDP expansion is expected to be slower in the third quarter of 2012 as well. The economy is thus seeing downside risks.

Crude oil           

Crude oil prices fall again

On Friday, oil prices fell for the second time since Monday. This fall was directly related to the news that China’s exports are falling. Since China is the world’s second largest importer of crude oil, a slowing economy there is bad news for the oil markets. Experts feel that market sentiment is weak as the Chinese economy has not regained its pace.

At 2:00 PM in Singapore, oil on the New York Mercantile Exchange was trading lower by 46 US cents at $92.94 per barrel. Brent crude on London’s ICE Futures Europe Exchange was trading at $112.63 per barrel, lower by 59 US cents.

Analysts feel that in the coming week, there may well be a rise in oil prices. This would be due to the fact that oil refineries in the US will be operating at near full capacity. If unrest in the Middle East continues, then there could be price rises.

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