Strategy Video: If the USDollar is a Safe Haven, Why Isn't It Rallying?
• The S&P 500 and other equity indexes have tumbled to open the week, suggesting 'risk aversion'
• Despite the dour sentiment, the US Dollar would not rally as traders sought safety
• The Greenback is a liquidity haven - a harbor investors seek in more extreme circumstances
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US equities picked up where they left off last week, extended an important technical break and tipping us deeper into 'risk aversion'. Yet, despite the sentiment shift, one of the FX market's most renowned safe havens - the US Dollar - seemed to be disconnected from the market reversal. Is this a sign that the Greenback is no longer a safe haven? Or does this signal a more moderate sentiment razing than equities would suggest? In today's Strategy Video, we discuss the Dollar's safe haven position and why it still has strong bullish prospects through the medium-term...whether fear takes over or not.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.