| | | | · Dollar Facing Two High Hurdles: Risk Trends and Euro Yield
· Euro Dominant Trend May be Bearish but ECB Bias May Lean Bullish
· British Pound Has an Easier Time Pricing in BoE Rate Decision
· Swiss Franc Fight Will Face Trouble in Euro's ECB Reaction
· Japanese Yen: Officials Growing More Creative in Effort to Depreciate
· Gold is More Focused on the Risk Aspect of the Euro Experience
| Written by: John Kicklighter, Senior Currency Strategist
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| Dollar Facing Two High Hurdles: Risk Trends and Euro Yield | The wave of fear that washed over the markets this past month is starting to recede; and the return to stability and tinge of confidence starting to show through is weighing on the US dollar. As the market's go-to safe haven asset when investors need liquidity and are putting their capital 'in cash'; the greenback naturally retraces as volatility and panic settle. For the Dow Jones FXCM Dollar Index (ticker = USDollar), this shift has translated into the biggest decline in three weeks. Now, hovering above the 10,000 level; it wouldn't take much to drive the dollar to the next phase of a larger, bearish correction. All that is needed is mere stability to undermine the currency's primary fundamental role. For more, distinctly risk-sensitive assets like the S&P 500 though; a break in the financial storm does not translate into a strong recovery...
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Best regards,
DailyFX Research Team
research@dailyfx.com |
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