The dollar gained against most of its major peers yesterday, with the safe havens JPY and CHF resisting its strength as market sentiment switched to ‘risk off’. The euro gave back a large portion of its latest gains, perhaps as investors remained concerned over Italy’s budget. The pound tumbled on fears that PM May could face a leadership challenge.
Market Sentiment Turns Negative, EUR Reverses Latest Gains
The dollar outperformed all but three of the other G10 currencies on Monday. It gained the most against GBP, NZD, and AUD, while it traded virtually unchanged against JPY, CHF and CAD.
The weakening of the commodity-linked AUD and NZD and the fact that the safe havens JPY and CHF resist the greenback’s strength suggest a switich back to risk off. Indeed, major EU and US indices were a sea of red yesterday, with the only exception being...
https://www.jfdbrokers.com/en/research/markets-switch-to-risk-off-gbp-down-on-brexit-developments