Is the Yen Truly a Safe Haven And New Zealand Dollar a Source for Yield?
US Dollar Suffers a Sharp Reversal Despite Positive Confidence Report Up until the open of the US session, it seemed as if the dollar was going to find significant reprieve to last week’s selling. However, when US-based liquidity filled out, the steady appreciation behind the world’s most liquid currency was quickly reversed in a matter of hours. If that wasn’t a clear enough sign that underlying risk trends are still holding their sway over investors’ appetites, the same bias was reflected in the broad pull back in the Japanese yen and the aggressive, 2.6 percent from the S&P 500 Index. And, though the initial drive against the dollar may have grown out of the market’s efforts to diversify and re-invest into higher yielding assets; there is growing evidence that speculation and sentiment are perhaps playing a larger role in extending the currency’s losses. In turn, we have to determine whether this is grounds for a fundamentally based reversal in the greenbacks favor. One of the most
