Too many gains and too strong performance can be a reason for traders being scared away from the asset. Yes, that happens more often than you think and with popular assets and currencies as well. For example, USD. Last week we were only hoping that it was going to get down from its high horse and we could only hope that its surge was going to be interrupted. And that really did happen. Right after the testimony of Jerome Powell that took place in the end of the week. And now we see that traders are still unprepared to go back to the greenback as it extends the fall from last week.

And falling USD might be just what we need right now. After all, growing USD means that neither major currencies nor precious metals have any room for improvement of their own price. And that is not something that we are prepared to live through. Seeing euro and pound have a room and a possibility to grow is only the indicator that traders are ready to go back to the other currencies, other that safe havens. And this in its turn indicates the growth of risk hunger, which is a good sign for the economy of the world. The higher is the risk hunger – the safer the markets are.

So, is falling USD a display of improving situation in the world? Well, it might just be.

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