The greenback is once again faltering as a haven choice with equities slumping
E-minis are a little off the lows and that has seen yen pairs get a minor lift on the day but the most notable move in the last half hour has been the decline in the dollar. The greenback is just losing ground all over the place as it falls to a session low against the rest of the major bloc.
EUR/USD and AUD/USD has now jumped up to session highs of 1.1474 and 0.7090 respectively while GBP/USD is on the verge of reclaiming the 1.3000 handle once again.
For cable, the pair touched a low of 1.2937 earlier this session but remains supported from daily support regions from the July low and early October lows of 1.2957 and 1.2922 respectively. That has so far helped to provide an area for buyers to lean on to bid the pair higher.
But the real story once again is the lack of dollar appeal in a time like this. It isn’t the first time this month that this has happened and today’s episode shows that it will continue to be a recurring theme whenever market sentiment sours – for now at least.
That doesn’t bode too well for the greenback as a whole and I’m really starting to feel a little iffy about the dollar’s status as a haven currency now. Add stretched positioning into the works, a pain trade could very well be on the cards.
I mean if something can’t rally when it should, it’s never a good sign.