Safe Havens Shine: Yen and Franc Gain Amid Market Uncertainty

Hello traders, and welcome to Thursday! Today’s economic calendar is packed with significant events that could stir up some volatility. We’re expecting the ADP Non-Farm Employment Change from the US, alongside the usual unemployment claims. Additionally, we’ll see the ISM Services PMI, which is anticipated to come in at 51.3, providing further insights into the state of the US services sector.

Yesterday was a notable day for several reasons. The Bank of Canada cut its interest rate by 25 basis points, a move that was widely anticipated. However, the real surprise came from the JOLTS job openings data, which fell short of expectations, suggesting a cooling in the labor market. But the biggest story continues to be the ongoing correction in the indices. Yesterday saw another round of declines, and today’s European session has kicked off with further attempts to push to new lows. The market sentiment is looking increasingly bearish, and all eyes will be on whether this correction deepens.

Turning to currencies, we’re seeing a continued flight to safety. The Japanese Yen and Swiss Franc remain the strongest performers over the past few days, reflecting increased demand for safe-haven assets amidst market uncertainty. On the other end, commodity-linked currencies like the Australian Dollar, Canadian Dollar, and New Zealand Dollar are among the weakest. This weakness aligns with the declines we’re seeing across the commodities sector.

The commodities market is also in retreat, with significant drops observed across the board. Natural gas and oil have both declined sharply, while precious metals are also feeling the pressure. Copper, palladium, platinum, and silver have all seen declines. Gold, however, is attempting to hold steady, maintaining its status as a safe-haven asset alongside the Swiss Franc and Japanese Yen.

Amidst this market turbulence, the Euro is showing some resilience. As noted earlier in the week, we’ve observed some positive momentum in Euro pairs, and this trend is continuing. The EUR/USD, in particular, had a strong session yesterday and appears poised to extend its bullish run today.

Source: https://www.axiory.com/analytics/market-news/safe-havens-shine-yen-and-franc-gain-amid-market-u