We saw Monday’s market trends continue into yesterday, with increasing tensions in Ukraine being the dominant driver. With the first reports of deaths coming out of the Eastern European nation, and further European Union discussions of economic sanctions being placed on Russia, there was a lot of uncertainty in the global marketplace yesterday. As a result, investor demand for safe-haven assets increased, with the Swiss franc and Japanese yen both continuing with the strength shown on Monday. The Australian dollar initially lost ground following the release of monetary policy meeting minutes early yesterday morning. The minutes showed policy-makers’ discussion to keep interest rates steady for an extended period, dampening rumours of an interest rate hike in the near future.
The big data releases today come out of China, with growth and Industrial Production figures coming out this afternoon. As the world’s second largest economy and a major industrial hub, any data releases will have an impact on a number of currencies, specifically the commodity-backed Australian, New Zealand and Canadian dollars. We also have an interest rate decision and press conference from the Bank of Canada, and a speech from the governor of the Bank of Japan. Markets will continue to be susceptible to the Ukrainian situation.
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