Elevated tension in Ukraine at the back end of last week saw traders turn to low-risk assets. As the geopolitical situation developed, and the rhetoric being used by Russia and the US became increasingly worrisome, we saw the traditionally safe-haven Japanese yen and Swiss franc perform well. As one would expect, the Russian rouble weakened, dropping almost a percent against the US dollar. We also saw emerging market stocks tumble, along with their respective currencies.
Looking forward to this week, out of New Zealand we have trade balance and business confidence figures. We also have a Japanese monetary policy statement and Canadian growth figures. Thursday’s Chinese manufacturing data will be the most significant release of the week, with the data from the world’s second largest economy likely to impact other currencies, particularly the commodity-backed Australian dollar.
Looking to buy or sell currencies? Contact your trader now for live rates, news and currency-purchasing strategies.