Dollar takes another hit
The US dollar (DXY above) is sagging across the board in a particularly-sudden move that kicked off against the commodity currencies but it spreading. Even the beaten-up euro is attempting a comeback now.
There isn’t a particular catalyst for the move and the market is thinned by holidays in many locals.
This is truly a dollar move rather than a risk move. One of the larger drops is in USD/JPY. A good risk proxy is generally AUD/JPY and it’s flat today.
I could give you a lot of reasons to sell the US dollar but none of them particularly apply to today. One thing I would say is that US stocks have been a popular place to rush to in the past few weeks but earnings start tomorrow and I can see the case for getting out ahead of that. The counterpoint is that US stocks are only down 1.4% today.
JPMorgan is reporting tomorrow and I think that’s the most-important thing on the calendar. Everyone wants to hear what Jamie Dimon will have to say.