At the very beginning of the day it wasn’t clear whether USD was going to withstand the pressure that was already pretty visible. There was prognosis that USD might fall as a result of Trump’s statement during WEF that opened in Davos this morning. But, it seems that the threat towards the greenback was before us all along. We were only ignoring it.
As you can see, the plunge of the greenback is very obvious. And it seems that the reason for the fall are not inside, as we are so used to be looking there, but on the outside of the country. To be more precise, the threat seems to be coming from China and from a very unexpected source too.
Seems that the world is becoming more and more unsettled with the newest health threat coming from China. At least this is what people are saying and the markets are of course reacting to the moods of the crowd. To be more precise, worries around Chinese and Asian markets now seem to be going global, which means that instability and threats are coming towards us once again. And, unfortunately, this time it is hard to say what can help USD recover. I would say that epidemic going away would cover our needs in stability and recovery.
With USD falling so rapidly, we are hoping for the growth in EUR and GBP.
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