Safe haven demand grew one again as the oil price rout and the economic situation in China take center stage. Both the Swiss Franc and the Japanese Yen saw demand rise, as did the Euro which is generally used in carry-trade transactions. With China’s economic recovery in question, commodity-linked currencies such as the Aussie and Kiwi Dollars came under heavy sell pressure. The Canadian Dollar was also under heavy pressure, but largely as a result of the oil price slide given that Canada is an oil-producing economy.
As reported at 10:50 am (GMT) in London, the USD/JPY pair was trading at 117.7700 Yen, a gain of 0.03%; the pair has ranged from 117.2250 Yen to 118.0165 Yen in today’s session. The EUR/CHF was 0.18% lower to trade at 1.0858 Swiss Francs; the pair’s daily low as at 1.0850 Swiss Francs while the high was at 1.0882. The EUR/USD was trading lower at $1.0851, down 0.10%, with today’s trading range at $1.0840 at the low end and $1.0905 at the high end.
Oil Price Slide’s Broad Impact
The fall in the price of oil, now to $30 a barrel, has weighed heavily on the commodity-linked pairs. The AUD/USD was trading at $.06991, down 0.06% while the NZD/USD was $0.6547, down 0.24%. The slide in prices is also hard on the USD/CAD pair which recently hit a 13-year trough. The pair was trading at C$1.4214, down 0.01%; the pair’s daily range is C$1.4204 and C$1.4269.