This morning, safe havens are firmly in play as investors fret over the state of Argentina and Turkey, alongside the impact of fresh tariffs landing on China.
The Japanese yen is in strong demand, with the USD/JPY dropping below 111.00 again this morning after yesterday’s heavy reversal. The AUD/JPY is down again after dropping to 80.50 on China contagion. The EUR/JPY and GBP/JPY are performing slightly better though.
The Swiss franc is also performing well, with the USD/CHF extending its losing run to six straight days. The EUR/CHF shrank further yesterday too and is unchanged this morning as investors fret over Europe’s exposure to Turkey.
The dollar pairs are mixed, with the AUD/USD extending losses, while the GBP/USD and EUR/USD make slight gains.
At 10.00, we have European CPI flash estimate at 10.00.
Canadian RMPI is at 13.30.
At 14.45, we have revised Chicago PMI.
The euro has been losing ground to the Swiss franc and this could well continue as Turkey remains under pressure.
This means further downside for the EUR/CHF.