01/17/2016 - US Dollar - What's behind the world reserve currency's disappointing performance

Forex

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* US Dollar - What's behind the world reserve currency's disappointing performance
* Market Movers: Weekly Technical Outlook
* Look Ahead: Stocks
* Look Ahead: Commodities
* Global Data Highlights

It was another disappointing week for risk asset bulls. After showing signs of stabilizing early in the week, global stocks (led by Chinese equities) dropped off the map on Friday as concerns about the oil market once again spooked traders. Some of the world's most important equity markets, including the S&P 500, FTSE, DAX, Nikkei, and Shaghai Composite, are all testing key medium-term support levels as of writing, so a bounce is certainly possible in the coming week. Regardless of what global equities do though, the bigger story might be that the world's reserve currency has dropped the ball in what should have been a perfect environment for the US dollar rally.

As we go to press, the "safe haven" US dollar index is trading near 98.60, essentially unchanged from last week's close of 98.40. With market volatility shooting through the roof and global economic concerns elevated, why haven't traders rushed to the perceived safe haven of the greenback? This week's US data was hardly inspiring, but... Full text »


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