The US dollar recovered on Monday, perhaps due to safe-haven inflows as market sentiment remained fragile during most of the day. However, risk appetite recovered somewhat overnight after China said that it is in talks with the US over trade. The British pound fell sharply yesterday as May decided to delay the Brexit vote in Parliament, despite EU’s signals that the current deal is not negotiable.
USD Attracts Safe Haven Flows, but Appetite Recovers Somewhat Overnight
The dollar traded higher against all but one of the other G10 currencies on Monday. The big loser was GBP, with NOK and CAD taking the second and third place respectively. The only currency that managed to resist the greenback’s strength was CHF.
The US dollar staged a comeback after Friday’s lower-than-expected NFPs, perhaps due to a combination of...
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