Haven Currencies Benefit as Risk Events Keep Investors Guarded
- Brexit angst hurts sentiment; Fed rate increase priced out
- Investors prefer yen, swissie before Fed, BOJ, SNB decisions
Stephen Gallo: 'Significant Conditions' in FX Markets
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The yen advanced with the Swiss franc as investors opted for their relative safety as they brace for events next week and discount chances the Federal Reserve will increase interest rates in coming months.
Japan’s currency performed best against the dollar among major currencies, followed by the Swissie. The odds that the Fed raises rates when it meets next week fell to zero after jobs data was released June 3. The report showed the fewest number of workers joined the labor force last month since 2010, undercutting interest in holding assets in dollars.