Geopolitical problems drives USD down
On Tuesday the greenback exchanged lightly under a 16 month high against a box of rivals, profiting from safe-haven appetite created by political ambiguities in Europe and concerns of a global economic retardation.
Trader trust has been consumed by a no-deal Brexit and painful trade tensions among China and the United States but also from concerns of probable delay between Italy and the European Union over Italy’s deficit budget. The dollar index, a measure of its power versus six major rivals, exchanged at 97.3, remaining modest of it’s more than a year high of 97.68 scores on Monday. Nick Twidale, a chief operating officer at Rakuten Securities said “The dollar has broken out of a 17-month range on the back of safe-haven buying, led by falling equity prices as well as the heavy sell-offs in the euro and sterling.”
Gold prices firm
U.S. gold futures went up about 0.1% to $1,204.4 per ounce.
On Tuesday Gold prices got higher while traders lost their yellow metal appetite after the precious metal dropped to over a 30-day low, and pressed down by a powerful USD. Spot gold was up about 0.28% at $1,204.20 per ounce touching its deepest level since October at $1,199.74 earlier in the trading session. Ronald Leung, a chief dealer at Lee Cheong Gold Dealers said “It’s been some time that we have seen this level, so we are seeing some buying here,” “However, a stronger dollar has capped the market.”
Oil falls once more, lost about 1%
On Tuesday oil prices dropped about 1 %. WTI went below $60 per barrel while the Brent crude went under $70.This is after the U.S. President Donald Trump set a set of demands on OPEC to not cut the supply and prop up the market. The decline happened due to a general market sell-off in Asia that came after a general fall on Wall Street as well, as the popular greenback scored a more than a year high earlier today, causing the oil imports to become more costly for any nation that is handling different currencies at their home.
Stocks in Asia affected by the Dow Fall
According to Reuters Topix index marked declines of about 2% and closed the day at 1,638.44 while Japan’s Nikkei 225 dropped about 2.0% and ended the day at 21,810.51.The Shares of Apple supplier Japan Display fell more than 9.50% after the company announced its sixth straight quarterly operating decline and reduced its outlook. On the other hand the Hong Kong’s Hang Seng Index was mainly in a range during the trading session. In other main Asian markets, equities largely marked declines.