Boris and Kathy Forex Weekly – 15-10-2018 – Commodity Dollars
October 15, 2018 12:06 am
In 2 trading days, the Dow Jones Industrial Average lost more than 1,300 points and the S&P500 fell over 5%. The last time there was a decline of this magnitude was in February and on the day when the UK voted to leave the European Union. Both times the declines were short-lived and with stocks rebounding on Friday, many investors are wondering if buyers will return just as quickly this time around. We’ll discuss this in further detail in the U.S. dollar portion of our note but the sell-off in stocks last week drove the greenback lower against most of the major currencies. The biggest beneficiary was the Japanese Yen, which isn’t a surprise because the Yen is a safe haven currency. However the gains in the New Zealand and Australian dollars are unusual because risk aversion tends to be negative for these currencies.
In 2 trading days, the Dow Jones Industrial Average lost more than 1,300 points and the S&P500 fell over 5%. The last time there was a decline of this magnitude was in February and on the day when the UK voted to leave the European Union. Both times the declines were short-lived and with stocks rebounding on Friday, many investors are wondering if buyers will return just as quickly this time around. We’ll discuss this in further detail in the U.S. dollar portion of our note but the sell-off in stocks last week drove the greenback lower against most of the major currencies. The biggest beneficiary was the Japanese Yen, which isn’t a surprise because the Yen is a safe haven currency. However the gains in the New Zealand and Australian dollars are unusual because risk aversion tends to be negative for these currencies.
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