Every day is full of new food for thoughts. We saw another day of US Dollar sale due to risk aversion flows and profit-taking after long-term bullish trend.
We strongly believe that most part of the move was related to investors who decided to get out of the market and sit on the fence, or in some safe heaven like yen.
Another reason of USD sell-off is the fear of geopolitical tensions. Trump vs Saudi Arabia issue made markets nervous, and made investors scared.
One more thing that may pressure USD further the way is Trump's agressive reaction on Fed's monetary policy stance. If he keeps pressuring Powel for hawkish stance, it may decrease the channces of further rate hikes, and send the USD lower.
In this case, USDJPY may become the biggest beneficiary with the pair targeting 111.20 support level initially with the next target at 110.50.
We strongly believe that most part of the move was related to investors who decided to get out of the market and sit on the fence, or in some safe heaven like yen.
Another reason of USD sell-off is the fear of geopolitical tensions. Trump vs Saudi Arabia issue made markets nervous, and made investors scared.
One more thing that may pressure USD further the way is Trump's agressive reaction on Fed's monetary policy stance. If he keeps pressuring Powel for hawkish stance, it may decrease the channces of further rate hikes, and send the USD lower.
In this case, USDJPY may become the biggest beneficiary with the pair targeting 111.20 support level initially with the next target at 110.50.