It is debatable that the dollar’s positions are being determined more or less by investor sentiment. The noticeable test of a 14-month drop in the Dollar Index last week and the concurrent push to a 1-year high from the standard rate Dow Jones Industrial Average is surely not a happenstance. This being said, how to settle the alongside rallies from both equities and the US dollar on Friday is the question one might ask. Risk appetite was indeed going up, as it was confirmed with the pace of equities, Treasury yields and the yen crosses. The apparently conflicting piece to this riddle is the US dollar. If the currency separating from the financial market’s most important basic driver or is this a coincidence that is going to be swiftly resolved or not, and if the bulls can take advantage of the immediacy of new highs in optimism and start the next leg of a productive trend or not are the question.
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