Fueled by Trump Concerns Safe Haven Demand Rises

17 May 2017 10:27:21 AM

By: DailyForex.com

The Japanese Yen and the Swiss Franc both hit multi-week peaks versus the US Dollar as the scrutiny into the Donald Trump White House escalates. The latest news is that the recently terminated FBI Director James Comey had memos documenting his meetings with the US President which clearly indicate that Trump may have tried to influence the investigation into Michael Flynn. A charge of justice obstruction could mean the beginning of impeachment proceedings for Trump. As a result, the US Dollar has continued to feel significant pressure as investors consider the possibility that Trump won’t finish out his term.

As reported at 11:04 am (BST) in London, the USD/JPY was trading at 112.332 Yen, down 0.64%; the pair had earlier hit a low of 112.254 Yen while the session peak holds at a distant 113.156. The USD/CHF was trading at 0.98371 Swiss Francs, down 0.19% and off the session low of 0.98160 Swiss Francs.

Trump Concerns Still Not Broad-Based

One currency strategist notes that the higher market volatility is all on the back of rising Trump uncertainty with sentiment for global risk markedly unstable. However, he points out that that markets are not all risk-averse, though that could change within moments given the almost day-to-day transgressions of a seemingly rudderless White House. Another currency strategist in London says FX traders are waiting to see if Trump can still organize and compromise his way to pushing through his plans.

Barbara Zigah is a freelance journalist living in Ghana, who specializes in Forex-related content; her online work has appeared in the IB Times, NASDAQ, Benzinga, and Seeking Alpha.

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