Safe Haven Currencies Ease Back
Safe haven currencies eased back from earlier highs but FX traders remain wary that an armed conflict could soon break out between Iran and the United States. Tensions have been high after the US President ordered a drone strike on a prominent Iranian military commander. Continued saber rattling by the Trump administration has done little to allay concerns. As a result, the Swiss Franc had been pushed to a 4-month peak against both the greenback and the Euro.
As of 11:18 am in London trade, the EUR/CHF was trading at 108.48 Swiss Francs, up 0.1209% and moving off the session trough of 108.304 Swiss Francs. The USD/CHF was also higher at 0.9706 Swiss Francs, up 0.2728%; the pair has ranged from a low of 0.96727 Swiss Francs to 0.97177 Swiss Francs in this trading session. The USD/JPY is higher at 108.4010 Yen, a gain of 0.0406%.
No Surprises for Eurozone Inflation Reading
In the Eurozone, FX traders had been waiting for the release of preliminary inflation data for the Eurozone for December. Eurostat reported that the figures aligned with analysts' projections at 1.3% for core inflation, which eliminates volatile components. The preliminary CPI was at 1.3%, up from the 1% reading in November. The EUR/USD was trading at $1.1178, down 0.1528%, and off the session high of $1.11985.