Morning Update – 10/02/16 by Michela Jaccarini
February 10, 2016Good morning!
This week has been a “risk off” week; we have seen the safe havens particularly strong. A risk off attitude is taken on when there is uncertainty in the market and global economic patterns. Due to market uncertainty, investors opt to take on little risk in their trades, and choose to invest in safe havens such as gold, Japanese Yen and the Swiss Franc. In February alone, gold has rallied up from a price of 1116 to 1200. USDJPY has dropped from a price of 121.70 to 114.18. Also, USDCHF dropped from 1.0250 to 0.9692. The more uncertainty there is in the market, the stronger these safe havens become.
Today, FED Chairman Janet Yellen testifies in her first public appearance since her press conference in December following the central bank’s rate increase which has been one of the main discussions over the past weeks following China’s situation. Her remarks will give insight and possibilities for the next FED meeting in March. Many investors are assuming that it will be a while until we see another rate hike with some even worrying about a looming recession!
Good luck!
