New Day: New Dollar Sale
Helen Rush | Oct 15, 2018 04:09PM ET
Every day is full of new food for thought. 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 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 for USD's sell-off is the fear of geopolitical tensions. The Trump-vs.-Saudi-Arabia issue made markets nervous and investors scared.
One more thing that may pressure USD further is Trump's aggressive reaction to the Fed's monetary policy stance. If he keeps pressuring Powell for his hawkish stance, it may decrease the chances of further rate hikes and send the USD lower.
In this case, USD/JPY may become the biggest beneficiary with the pair targeting 111.20 support initially with the next target at 110.50.
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