The Swiss Franc and Japanese Yen, both deemed safe haven currencies by FX traders, lost ground in today’s trading as appetite for risk is whetted after a rally in global equities. Nonetheless, many FX traders are taking and breather and anxiously awaiting a policy decision from the Federal Reserve Bank which is due out later today, as well as a slew of US-based economic data. For the most part, analysts don’t expect the Fed to take on a hawkish bias given the recent dismal labor report, and believe that the accompanying statement will hint at a future rate hike much further along in the year than previously anticipated. A dovish or even somewhat balanced tone could leave the Dollar under pressure.
As reported at 10:55 am (BST) in London, the USD/JPY was trading at 106.3170 Yen, up 0.27% while the EUR/CHF is higher at 1.0833 Swiss Francs, a gain of 0.30%. The EUR/USD was up 0.13% at $1.1226; today’s trading range saw a low of $1.1189 and a peak of $1.1236,
Brexit Fears Still Prevalent
The issue of a possible Brexit could also impact the Fed’s decision making process. It seems that the latest polls show a slight lead for the “leave” campaigners. Britons will vote in a referendum to withdraw from the European Union on June 23rd. The Pound has been under significantly heavy pressure with accompanying volatility as a result of the uncertainty of a Brexit but has recovered in today’s trading. The GBP/USD was trading at $1.4203, a gain of 0.63% while the EUR/GBP was down 0.51% to trade at 0.7901 Pence.