The Japanese yen, Swiss franc and gold, or in other words safe havens, along with the U.S. dollar gained on Wednesday amid concerns regarding U.S.-China trade talks.
U.S. President Donald Trump said on Tuesday he was not satisfied with the progress in trade talks with China, whilst referred that his summit with North Korean leader Kim Jong Un may not go as planned.
The dollar index, which tracks the green currency’s movements versus a basket of major currencies, strengthened to a five-month top of 93.93.
The yen emerged as the strongest safe haven currency, as the CHFJPY pair traded lower at 110.76 after hitting a bottom of 110.56.
The euro dropped sharply versus the yen to 128.47, while plunged to 1.1594 against the franc amid questions concerning the nominated Italian Prime Minister.
Little-known law professor Giuseppe Conte remains Italy’s prime minister nominee for the Five-Star Movement and League parties, Five-Star leader Luigi Di Maio said on Wednesday.
Also, economic data from the euro area showed an ease in growth to an 18-month low in May, raising expectations the ECB would hold stimulus beyond September.
The British pond plunged to a five-month low against the U.S. dollar to 1.3319 after a report showing an unexcepted deceleration in U.K. CPI inflation in the year ended April.
The chances of an interest rate hike by the Bank of England slipped to a third from near a half earlier this week, according to Bloomberg.
Gold dampened its sideway movements that have started since touching a low of $1286.38 an ounce on May 16 to trade higher at $1296.52.
Later in the day, the Federal Reserve minutes for May’s policy meeting
will be out.