The Dollar as a Safe Haven?

The Dollar as a Safe Haven?

by Trader Dan
Given all the turmoil and market uncertainty associated with the tragedy in Japan, not to mention continued unrest across the MENA, it is again very telling that the US Dollar cannot seem to maintain any sort of strong safe haven bid.

Instead it is the Swiss Franc that is the main beneficiary of such flows.

We keep seeing this type of pattern during periods in which risk aversion is the order of the day. The Dollar initially gets the knee jerk safe haven bid and then runs out of steam as sellers look to take advantage of the rally. I am hesistant to be too dogmatic with all this insane volatility but I am wondering if we are already beginning to see the global investment community voting with their feet against the Dollar remaining as the sole reserve currency.

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This entry was posted in Dan Norcini, Technical Analysis, Trader Dan's Market Views, USD. Bookmark the permalink.

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