USD positive in early 2023 trading
Safe-haven gets support
Recession fears are rising
Tuesday's trade open saw safe-haven stocks find support for gains amid renewed fears of a recession.
This is a string of warnings from the head of the International Monetary Fund (IMF), Kristalina Georgiva, who said the United States, the European Union (EU) and China will witness a slower economy this year.
As a result, the safe-haven trades of the US dollar, the yen and the Swiss franc recorded gains in the Asian session today, while other major currencies declined.
Despite this, currency movements in the market remain limited as many investors have not yet returned from the New Year holidays in most countries.
The market was also quiet from the absence of key data that will only be published from Wednesday, with the market's focus more on the release of the FOMC meeting minutes report early Thursday morning and the US NFP employment data on Friday.
The euro was the weakest to open 2023, seeing it trade around 1.065 against the US dollar, while the pound moved slowly at 1.204.
The Aussie dollar was slightly down after being the strongest currency in the previous session by closing trade at 0.6800.
Meanwhile, China's Covid-19 uncertainty continues to plague markets, with more countries starting to introduce new measures to control the new spread of the outbreak from the country.
