Safe-Havens Pose As Largest Market Winner

Thursday  market session led to significant gains on safe-haven assets, with gold (XAUUSD), and the Japanese Yen pairing against the dollar (USD/JPY) recording tremendous benefits. Gold itself, surged up to 200-pips, from daily low around $1,493 to $1,514, whereas pair of USD/JPY plunging more than 80-pips from a daily high around 108.80 to 107.90. Prompt of safe-haven assets was due to a major demand in the market amid various uncertainties and risks. 

Recently, the US FED cut their interest rate by 25-basis point, which led to the sell-off in the dollar while safe-haven assets are becoming the market’s investment alternative. Furthermore, recent weakness form economic data and global recession haunting the market also boosted the safe-haven appeal. 

Most recent trade uncertainties primarily supported significant demand on Thursday, with not just the cancellation of the APEC summit, where the US and China were expected to sign the phase one trade deal at, but also recent doubts from China towards reaching a long-term trade deal with US President, Donald Trump. The reports on China’s doubt brought havoc to the stock markets, as investors sell-off their investment there and dive into safe-haven gold and Yen. 

Looking ahead, the dollar’s chance for a comeback will require positive US jobs data releasing later today, namely: Non-farm Payroll, Unemployment rate, and Average Hourly Earnings. As FED emphasized its stance to maintain a strong labor market, the release of the above three data will play a significant role not only towards the dollar’s market but the safe-havens as well.