Stocks are lower, interest rates are lower, commodities are lower…all those are signs of risk aversion. The dollar is lower today (a sign of risk assumption, in recent months), but some are wondering whether the move was more order-driven than sentiment driven. Talk of a yard of USD/CHF being sold today by a relative non-player may have had an out-sized impact.
Keep an eye on equities as the day wears on as the correlation could come back into vogue as the ripple-effect of the order dissipates. EUR/USD trades quietly at 1.3130.
