Things are Turning Ugly for the Buck
Skerdian Meta • 1 min read
The USD has been weak over recent weeks, although it has held up pretty well against the Yen and the commodity currencies.
In the last few trading sessions, the dollar was thrown out of the window. EUR/USD stretched its uptrend further today to 1.1150, commodity dollars have also made some respectable gains, while USD/JPY has tumbled about 250 pips.
This seems to be turning into a dash for safety. The fall in USD/JPY is a perfect example, along with the 40 tumble in EUR/CHF.
This reaction is mostly due to the White House and U.S. politics, which is not a surprise considering President Trump's tendency to say controversial things. The information leak between Russia and the U.S. and the situation with the FBI is what triggered this USD selloff.
This is yet another Trump crisis, but the newest development is that, this time, Republicans are distancing themselves from Trump. This doesn´t mean Trump will be forced to resign, but the forex market is in a state of panic.
Now it´s a bit too late to sell the USD, but we shouldn't buy it either until this selling frenzy is over. So, in this situation I think it´s better to wait until the water clears and try to pick short term forex traders.