By: DailyForex.com
The flight to safety in the wake of the terrorist act in Belgium sent the Swiss Franc and Japanese Yen soaring earlier today. Analysts say that at least until some positive economic news alters market sentiment investors are likely to see fear continue on as the market’s main driver. In a quiet reporting day, markets today will rely on the US Housing Price Index as well as a preliminary PMI report to help gauge the US Dollar’s direction.
As reported at 10:46 am (GMT) in London, the EUR/CHF was trading at 1.0891 Swiss Francs, down 0.19%; the pair has ranged from a low of 1.0877 Swiss Francs to 1.0925 Swiss Francs at the high end. The USD/JPY was also lower at 117.6656 Yen, a loss of 0.30% while the EUR/JPY was lower at 125.3300 Yen, down 0.58%.
Dollar Gets a Bounce on Rate Hike Expectations
In the US, the Dollar continues to firm against both the British Pound and the Euro as market players reconsider a more imminent rate hike than previously thought. Two of the Federal Reserve’s key officials both supported a rate hike in the near term. That helped to broadly lift the greenback with the US Dollar Index pulling up from last week’s 5-month low set at 94.578 .DXY. The Index is used by traders to assess the relative value of the Dollar against major peers. Currently, the Index is trading at up at 95.656 .DXY, a gain of 0.39%. The EUR/USD was lower at $1.1209, down 0.29% while the GBP/USD was down by 0.46% at $1.4305.