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The U.S. dollar traded close to a six week high, versus a basket of its currency peers, during the overnight and early morning trading sessions on Monday February 11th. The upcoming USA-China trade talks begin this week, with the aim of discouraging the Trump administration from implementing the threat of sanctions, on a further $200b of Chinese imports. The upcoming talks are beginning to concentrate both investors’ and traders’ minds, whilst consequently influencing their trading decisions. The import tariffs on the $200b of Chinese goods, are set to rise from 15% to 25%, if no resolution is reached.

The key USA interest rate is currently 2.5%, due to this rate being out of step with other central banks, the greenback has developed safe haven appeal, during the recent times of uncertainty and potential looming crises. The strength of USD as a safe haven currency can be measured best versus its performance of other traditional safe haven currencies, such as the Swiss franc and Japanes...

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